Question

X commenced business on 1st April, 2013 with a capital of 76.000,00. On 1st March, 2014 his assets were worth 80,00,000 and liabilities 50,000, Find out his closing capital. A. 79,50,000
B, 3,50,000
C.76.00,000
D. 80,00,000



please solve​

Answer 1

Explanation:

Given

Assets on year end = 800000

Capital on year beginning = 600000

Liabilities on year end = 50000

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closing capital = assets on year end - liabilities on year end

= 800000 - 50000

= 7,50,000

Closing capital = 750000

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Closing capital = Opening capital + profit

7,50,000 = 600000 + Profit

Profit = 750000 - 600000

= 150000

Profit earn during the year is 1,50,000