Question

Capital of Ganesh Gupta in the beginning of the year was Rs. 70,000. During the year his business earned a profit of Rs. 20,000, he withdrew Rs. 7,000 for his persona use. He sold ornaments of his wife for Rs. 20,000, and invested that amount into the business. Find out his Capital at the end of the year.

Answer 1

Capital at the end of the year = Capital in the beginning + Additional Capital + Profit – Drawings
= 70,000 + 20,000 + 20,000 – 7,000
= Rs. 1,03,000