20
Question
A commenced his cloth business on 1st April, 2018 with a capital of ₹ 30,000. On 31st March 2019, his assets were worth ₹ 50,000 and liabilities of ₹ 10,000. Find out his closing capital and profits earned during the year.
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Solution
Closing Capital
=
Assets – Liabilities
=
50,000 – 10,000
=
Rs 40,000
Profit
=
Closing Capital – Opening Capital
=
40,000 – 30,000
=
Rs 10,000
|
Closing Capital |
= |
Assets – Liabilities |
|
|
= |
50,000 – 10,000 |
|
|
= |
Rs 40,000 |
|
Profit |
= |
Closing Capital – Opening Capital |
|
|
= |
40,000 – 30,000 |
|
|
= |
Rs 10,000 |
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