Manmohan started his business on 01.01.2008 with a capital of Rs. 4,5

1.	Manmohan started his business on 01.01.2008 with a capital of Rs. 4,50,000. On 31.12.2008, his position was as under:ParticularsRs.Cash1,00,000Bills receivable80,000Plant52,000Land and Building2,00,000Furniture45,000He owed Rs. 30, 000 to his friend Ashok on that date. He withdrew Rs. 6,000 p.m. for his household purposes. Ascertain his profit or loss for the year ending 31.12.2008.
Answer» Opening Capital 4,50,000 Closing Capital = Assets – Liability 4,77,000 – 30,000 = 4,47,000 Drawings = 6,000 × 12 = 72,000 Additional Capital = W.L Profit =. 4,47,000 + 72,000 – 4,50,000 = 69,000.

Manmohan started his business on 01.01.2008 with a capital of Rs. 4,50,000. On 31.12.2008, his position was as under:ParticularsRs.Cash1,00,000Bills receivable80,000Plant52,000Land and Building2,00,000Furniture45,000He owed Rs. 30, 000 to his friend Ashok on that date. He withdrew Rs. 6,000 p.m. for his household purposes. Ascertain his profit or loss for the year ending 31.12.2008.

Answer»

Opening Capital 4,50,000

Closing Capital

= Assets – Liability 4,77,000 – 30,000

= 4,47,000 Drawings

= 6,000 × 12 = 72,000

Additional Capital = W.L Profit

=. 4,47,000 + 72,000 – 4,50,000

= 69,000.