Capital of Ganesh Gupta in the beginning of the year was ₹ 70,000. During the year his business earned a profit of ₹ 20,000, he withdrew ₹ 7,000 for his personal use. He sold ornaments of his wife for ₹ 20,000, and invested that amount into the business. Find out his Capital at the end of the year.

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Solution

Capital at the end

=

Opening Capital + Additional Capital + Profit − Drawings

=

70,000 + 20,000 + 20,000 − 7,000 = Rs 1,03,000

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Capital at the end	=	Opening Capital + Additional Capital + Profit − Drawings
	=	70,000 + 20,000 + 20,000 − 7,000 = Rs 1,03,000

Capital at the end = Opening Capital + Additional Capital + Profit − Drawings = 70,000 + 20,000 + 20,000 − 7,000 = Rs 1,03,000

Capital at the end

=

Opening Capital + Additional Capital + Profit − Drawings

=

70,000 + 20,000 + 20,000 − 7,000 = Rs 1,03,000