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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Pravav started business on 1st April, 2024 with capital of ₹5,50,000. On 31st March, 2025, his total assets were ₹10,75,000 and liabilities were ₹2,92,500. Calculate the amount by which his capital has increased as on 31st March, 2025.
Closing Capital = Total Assets − Liabilities
| Capital (31st March, 2025) | = ₹10,75,000 − ₹2,92,500 |
| = ₹7,82,500 |
Increase in Capital = Closing Capital − Opening Capital
| Increase in Capital | = ₹7,82,500 − ₹5,50,000 |
| = ₹2,32,500 (Profit) |
Capital increased by ₹2,32,500 (which represents the profit earned during 2024-25).
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 "T.S. Grewal Class 11 Chapter 5 Q.21 - Calculate Increase in Capital (Pravav)", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Accounting Equation.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 11 Chapter 5 Q.21 - Calculate Increase in Capital (Pravav)" instantly.
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