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Question No 26 Chapter No 5
26. Mohan started a business on 1st April 2017 with a capital of Rs 25,000 and a loan Rs 12,500 borrowed from Shyam. During 2017-2018 he had introduced additional capital of 12,500 and had withdrawn Rs 7,500 for personal use. On 31st March 2018, his assets were Rs 75,000. Find out his capital as on 31st March 2018 and profit made or loss incurred during the year 2017-2018.
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Following items are already given in the question: -
So, to find out the profit made or loss incurred during the year 2017-2018, we have to find out first CCBP and CCAP. The difference between both terms will be profit or loss for the year.
With the Help of Following Formula, we can find out CCBP:
Closing Capital before profit (CCBP)= Opening capital + Add. Capital - Drawing
Closing Capital before profit (CCBP)= 25,000 + 12,500 - 7,500
Closing Capital before profit (CCBP)= 30,000/-
Now, with the Help of Following Formula, we can find out CCAP:
Closing Capital after profit (CCAP) = Total assets – Total Liabilities
Closing Capital after profit (CCAP) = 75,000-12,500
Closing Capital after profit (CCAP) = 62,500/-
Now in last, with the Help of Following Formula, we can find out Profit/Loss :
Profit/Loss = CCAP – CCBP
Profit/Loss = 62,500 – 30,000
Profit/Loss = 32,500
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question No 26 Chapter No 5 – T.S. Grewal 11 Class", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to T.S. Grewal 11 Class Financial Accounting.
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