Question

Following information of an accounting year is given:
Opening Capital ₹ 60,000; Drawings ₹ 5,000; Capital added during the year ₹ 10,000 and Closing Capital ₹ 90,000. Calculate the Profit or Loss for the year.

Answer 1

Statement of Profit or Loss
Particulars	Amount (Rs)
Capital at the end	90,000
Add: Drawings	5,000
	95,000
Less: Additional Capital Introduced	(10,000)
Adjusted Capital at the end	85,000
Less: Capital in the beginning	60,000
Net Profit for the year	25,000