Question

XYZ Associates is not maintaining full-fledged accounts on Double entry system basis. From the following details estimates the capital of the firm as on $31-3-2014$.
Capital as on $1-04-2013$ Rs. $80,000$
Capital added during the year Rs. $20,000$
Drawing during the year Rs. $35,000$
Profit credit to the capital A/c Rs. $60,000$

• A. Rs. $1,50,000$
• B. Rs. $1,25,000$
• C. Rs. $1,75,000$
• D. Rs. $1,45,000$

Answer 1

The correct option is B Rs. $1,25,000$

Calculation of Capital of the firm as on 31-03-2014

Capital as on 01-04-2013 80,000

Add: Capital added during the year 20,000

Add: Net Profit earned during the year 60,000

Less: Drawing during the year 35,000

Closing Capital as on 31-03-2014 1,25,000