Question

Vikas maintains his books of account on Single Entry System. He provides following information from his books. Find out additional capital introduced in the business during the year 2017-18.

Opening Capital – Rs. 1,30,000 ; Drawing during the year Rs. 50,000
Closing Capital – Rs. 2,00,000 ; Profit made during the year Rs. 1,00,000

Answer 1

Additional Capital = Closing Capital + Drawings – (Opening Capital + Profit) 

= 2,00,000 + 50,000 – (1,30,000 + 1,00,000)
= 2,50,000 – 2,30,000 = Rs.20,000