Question

X commenced business on 1st April,2019 with a capital of Rs.6,00,000. On 31st March,2020 his assets were worth Rs. 8,00,000 and liabilities Rs.50,000. Find out his closing capital. *

Rs.7,50,000

RS. 2,00,000

RS. 5,00,000

None of these

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Answer 1

Answer:

Closing capital = 7,50,000

Given

Assets on year end = 800000

Assets on year beginning = 600000

Liabilities on year end = 50000

Therafore, Closing capital = assets on year end - liabilities on year end

= 8000000 - 50000

= 750000

Closing capital = 750000