Vikas maintains his books of account on Single Entry System. He provides following information from his books. Find out additional capital introduced in the business during the year 2018–19.
Opening Capital − ₹ 1,30,000 Drawings during the year ₹ 50,000
Closing Capital − ₹ 2,00,000 Profit made during the year ₹ 1,00,000

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Solution

Additional Capital = Capital at the End + Drawings − (Capital in the Beginning + Profit)

= 2,00,000 + 50,000 − (1,30,000 + 1,00,000)

= 2,50,000 − 2,30,000 = Rs 20,000

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Similar questions

	₹
Capital on 1st April, 2017	15,200
Capital on 31st March, 2018	16,900
Drawings made during the year	4,800
Capital introduced on 1st August, 2017	2,000

Mr. Kapil does not keep proper records of his business and he provided the following information.

You are required to prepare a statement showing the profit or loss for the year 2011-12.
Opening Capital (01-04-2011) , 50,000

Closing Capital (31-03-2012) , 1,00,000

Additional capital introduced (2011-12) , 20,000

Drawings made during the year (2011-12) , 40,000

	₹
Opening Capital	1,00,000
Closing Capital	1,25,000
Drawings during the year	30,000
Capital added during the year	37,500

	₹
Capital on 1st April, 2018	15,200
Capital on 31st March, 2019	16,900
Drawings made during the year	4,800
Capital introduced on 1st August, 2018	2,000

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Additional Capital	=	Capital at the End + Drawings − (Capital in the Beginning + Profit)
	=	2,00,000 + 50,000 − (1,30,000 + 1,00,000)
	=	2,50,000 − 2,30,000 = Rs 20,000