Question

X started business on 1st april 2019 with a capital of Rs 1,00,000 and a loan of Rs 50,000 from the bank . On 31st March 2020 his assets were Rs 1,75,000 . Find out his capital as on 31st March 2020 and profit earned during the year 2019-20.​

Answer 1

Answer:

profit is 25000 whereas capital is 125000

Explanation:

accounting equation

Total assest = capital + liabilities

total assets is 175000( as on 31st March)

capital = 100000( on 1st April)

loan = 50000( liability)

total= capital + liability ( 100000+50000=150000)

so difference is 25000 so it is profit

so capital is 100000+25000(profit)