X started a business on 1st April, 2013 with a Capital of ₹ 1,00,000 and a loan of ₹ 50,000 from the bank. On 31st March, 2014, his assets were ₹ 1,75,000. Find out his Capital as on 31st March, 2014 and profit earned during the year 2013-14.
Answers
Explanation:
Given ,
opening capital =1,00,000
liability (loan)=150000
additional capital = 50000
Drawings = 30000
asset on year ended =300000
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closing capital = asset on year ended - liabilities on year ended
= 300000-150000
=150000
therefore , closing capital = 150000
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Closing capital = opening capital + additional capital - drawing +profit
150000 = 100000+50000-30000+profit
150000 =120000+profit
profit = 150000-120000
Profit =30000
Therefore profit for year 2015-16 = 30000
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