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Capital introduced by Mr. A on 01.01.2005 Rs.100000. Further capital introduced during the year was Rs.50,000. Mr. A withdrew Rs.200 per month on the last date of each month. Interest on drawings was charged @ 5%. Profit earned during the year was Rs.10,000. Capital on 31.12.05 will be?
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Capital introduced by Mr. A on 01.01.2005 Rs.100000. Further capital i...
Calculation of Capital on 31.12.05

Introduction of Capital
- Capital introduced by Mr. A on 01.01.2005: Rs.100000
- Further capital introduced during the year: Rs.50000
- Total capital introduced: Rs.150000

Withdrawals
- Mr. A withdrew Rs.200 per month on the last date of each month
- Total withdrawals for the year: Rs.2400 (200 x 12)

Interest on Drawings
- Interest on drawings was charged @ 5%
- Total interest on drawings for the year: Rs.126 (2400 x 5/100)

Profit Earned
- Profit earned during the year: Rs.10000

Calculation of Capital on 31.12.05
- Opening capital (01.01.05): Rs.100000
- Add: Capital introduced during the year: Rs.50000
- Add: Profit earned during the year: Rs.10000
- Less: Total withdrawals for the year: Rs.2400
- Add: Interest on drawings: Rs.126
- Closing capital (31.12.05): Rs.125726

Explanation
- Capital is the amount invested by the owner in the business.
- In this case, Mr. A introduced Rs.100000 as capital on 01.01.2005 and further introduced Rs.50000 during the year, making the total capital introduced Rs.150000.
- Mr. A made withdrawals of Rs.200 per month on the last date of each month, which amounted to Rs.2400 for the year.
- Interest on drawings was charged @ 5%, which amounted to Rs.126 for the year.
- Profit earned during the year was Rs.10000.
- To calculate the capital on 31.12.05, we add the opening capital, capital introduced, and profit earned during the year, and deduct the total withdrawals for the year. We then add the interest on drawings to arrive at the closing capital of Rs.125726 on 31.12.05.
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Capital introduced by Mr. A on 01.01.2005 Rs.100000. Further capital introduced during the year was Rs.50,000. Mr. A withdrew Rs.200 per month on the last date of each month. Interest on drawings was charged @ 5%. Profit earned during the year was Rs.10,000. Capital on 31.12.05 will be?
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Capital introduced by Mr. A on 01.01.2005 Rs.100000. Further capital introduced during the year was Rs.50,000. Mr. A withdrew Rs.200 per month on the last date of each month. Interest on drawings was charged @ 5%. Profit earned during the year was Rs.10,000. Capital on 31.12.05 will be? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Capital introduced by Mr. A on 01.01.2005 Rs.100000. Further capital introduced during the year was Rs.50,000. Mr. A withdrew Rs.200 per month on the last date of each month. Interest on drawings was charged @ 5%. Profit earned during the year was Rs.10,000. Capital on 31.12.05 will be? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Capital introduced by Mr. A on 01.01.2005 Rs.100000. Further capital introduced during the year was Rs.50,000. Mr. A withdrew Rs.200 per month on the last date of each month. Interest on drawings was charged @ 5%. Profit earned during the year was Rs.10,000. Capital on 31.12.05 will be?.
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