X started business on 1st April 2016 with a capital of Rs 50,000 If assets were Rs 95,000 - Accountancy - Recording of Transactions - I

Question

X started business on 1st April 2016 with a capital of Rs 50,000 If
assets were Rs 95,000 and liabilities were Rs 30,000 find its
capital at the end and profit earned during the year?

Komal Rani · Accepted Answer

Dear student
Closing Capital = Assets - Liabilities
Closing Capital = 95000-30000
Closing Capital = 65000

Profit = Closing Capital- Opening Capital
Profit = 65000 - 50000
Profit = 15000

Regards

X started business on 1st April 2016 with a capital of Rs. 50,000. If assets were Rs.95,000 and liabilities were Rs. 30,000 find its capital at the end and profit earned during the year?