Question No 25 Chapter No 5
- Mohan started a business on 1st April 2017 with a capital of Rs 10,000 and borrowed Rs 3,000 from a friend. He earned a profit of Rs 5,000 during the year ended 31st march 2018 and withdrew cash Rs 4,000 for private use. What is his capital on 31st march, 2018?
- Mahesh started a business with a capital of Rs 15,000 on 1st April 2017. During the year he made a profit of Rs 3,000. He owes Rs 2,500 to suppliers of goods. What is the total of assets in his business on 31st March 2018?
The solution of Question No 25 Chapter No 5: –
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Opening Capital is given = 10,000
Profit is given = 5,000
Drawing is given = 4,000
With the Help of Following Formula, we can find out closing capital:
Closing Capital = Opening + Income/Profit –Expenses/Losses/Drawing
Total Assets = 75,000 + 15,000
Closing Capital = 10,000 + 5,000 -4,000
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Closing Capital = 11,000/-
2. Opening Capital is given = 10,000
Total Liabilities is given = 2,500
Profit is given = 3,000
With the Help of Following Formula, we can find out closing capital:
Closing Capital = Opening Capital + Income/Profit – Expenses/loss/Drawing
Closing Capital = 15000 + 3,000
Closing Capital = 18,000/-
So, we can find out total Assets
With the Help of Following Formula, we can find out this.
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Total Assets = Total/closing Capital + Total Liabilities
Total Assets = 18,000 + 2,500
Total Assets = 20,500/-
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