Question

Mohan stared a business on 1^st April 2014 with a capital of Rs.25,000 and a loan of Rs.12,500 borrowed from Shyam. During 2014-15 he had introduced additional capital of Rs.12,500 and had withdrew Rs.7,500 for personal use. On 31^st March 2015 his assets were Rs.75,000. Find out his capital as on 31 March,2015 and profit made or loss incurred during the year 2014 – 15.

Answer 1

Capital on March 31,2015 = Assets - Loan from shyam

= Rs.75,000 - 12,500

= Rs.62,500

Profit (or Loss) during the year 2014-15