1
Question
Mohan started a business on 1st April, 2018 with a capital of ₹ 25,000 and a loan of ₹ 12,500 borrowed from Shyam. During 2018-19 he had introduced additional capital of ₹ 12,500 and had withdrawn ₹ 7,500 for personal use. On 31st March, 2019 his assets were ₹ 75,000. Find out his capital as on 31st March, 2019 and profit made or loss incurred during the year 2018-19.
Open in App
Solution
Capital on March 31, 2019 = Assets − Loan from Shyam
= 75,000 − 12,500 = Rs 62,500
Profit (or Loss) during the year 2018-19 = Capital on March 31, 2019+ Drawings − (Additional Capital + Capital on April 01, 2018)
= 62,500 + 7,500 − (12,500 + 25,000)
= 70,000 − 37,500 = Rs 32,500
Capital on March 31, 2019 = Assets − Loan from Shyam
= 75,000 − 12,500 = Rs 62,500
Profit (or Loss) during the year 2018-19 = Capital on March 31, 2019+ Drawings − (Additional Capital + Capital on April 01, 2018)
= 62,500 + 7,500 − (12,500 + 25,000)
= 70,000 − 37,500 = Rs 32,500
Suggest Corrections
102
Similar questions