Vinod commenced his cycle manufacturing unit in Delhi on 1st April,2019 with a capital of Rs. 9,00,000. At the end of 31st Mach,2020 his liabilities (except capital) were Rs. 4,00,000. On this date of assets was Rs. 15,00,000. You are required to calculate the profit made by Vinod during the year. ( only write profit amount)
Answers
Answer:
closing capital. = assets - liability
=. 1500000- 400000=
=1100000
profit. = closing Capital- opening capital
= 1100000- 900000
=200000
Concept:
Profit is computed by adding the drawings, subtracting the capital added to the capital at the end of the year, and accounting for the variations in capital at the beginning and end of the year.
The adjusted balance displayed at the beginning of a bookkeeping period is the opening capital. The opening balance is a measurement of the assets in a company's books at the beginning of a new financial period. A closing capital is the amount, whether positive or negative, that is still in an account in your chart of accounts at the end of an accounting period or year.
Given:
Opening capital = 9,00,000
Liabilities = 4,00,000
Assets = 15,00,000
Find:
Profit made by Vinod
Solution:
Closing capital. = Assets - Liability = 1500000- 400000= 1100000
Profit. = Closing capital- Opening capital= 1100000- 900000 =200000
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