Question

X started a business on 1st April, 2012 with a capital of Rs.50,000 and a loan of Rs.25,000
borrowed from Y. During 2012-13, he had introduced additional capital of Rs.25,000 and had
withdrawn Rs. 15,000 for personal use. On 31st March, 2013 his assets were Rs. 1,50,000. Find
out his capital as on 31st March, 2013 and profit made or loss incurred during the year 2012-13

Answer 1

Capital on 31st march = closing capital= total assets - total liability
this implies 1,50,500-25,000=1,25,000