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Ram started business with capital of Rs 750000 and loan of Rs 200000.On 31 March his assets were Rs 1500000.Also he introduced as capital of Rs 125000 during the year and withdraw Rs 40000 for personal use calculate profit /loss.?
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Ram started business with capital of Rs 750000 and loan of Rs 200000.O...
Calculation of Profit/Loss
To calculate the profit or loss of Ram's business, we need to follow the below steps:
Step 1: Calculate the total capital
- Initial capital = Rs 750000
- Loan = Rs 200000
- Additional capital introduced = Rs 125000
- Total capital = Initial capital + Loan + Additional capital introduced
= Rs 750000 + Rs 200000 + Rs 125000
= Rs 1075000
Step 2: Calculate the total assets
- Total assets as on 31st March = Rs 1500000
Step 3: Calculate the total liabilities
- Total liabilities = Total assets - Total capital
= Rs 1500000 - Rs 1075000
= Rs 425000
Step 4: Calculate the profit or loss
- Profit or loss = Total assets - Total liabilities - Withdrawals
= Rs 1500000 - Rs 425000 - Rs 40000
= Rs 1085000
Therefore, Ram's profit is Rs 1085000.
Explanation
- Ram started his business with an initial capital of Rs 750000 and a loan of Rs 200000. This makes his total capital Rs 950000.
- During the year, he introduced additional capital of Rs 125000, which makes his total capital Rs 1075000.
- As of 31st March, his total assets were Rs 1500000.
- To calculate the profit or loss, we need to subtract the total liabilities and withdrawals from the total assets. The total liabilities are calculated by subtracting the total capital from the total assets. Ram withdrew Rs 40000 for personal use during the year, which needs to be subtracted from the total assets as well.
- After performing the calculation, we get a profit of Rs 1085000 for Ram's business.
To calculate the profit or loss of Ram's business, we need to follow the below steps:
Step 1: Calculate the total capital
- Initial capital = Rs 750000
- Loan = Rs 200000
- Additional capital introduced = Rs 125000
- Total capital = Initial capital + Loan + Additional capital introduced
= Rs 750000 + Rs 200000 + Rs 125000
= Rs 1075000
Step 2: Calculate the total assets
- Total assets as on 31st March = Rs 1500000
Step 3: Calculate the total liabilities
- Total liabilities = Total assets - Total capital
= Rs 1500000 - Rs 1075000
= Rs 425000
Step 4: Calculate the profit or loss
- Profit or loss = Total assets - Total liabilities - Withdrawals
= Rs 1500000 - Rs 425000 - Rs 40000
= Rs 1085000
Therefore, Ram's profit is Rs 1085000.
Explanation
- Ram started his business with an initial capital of Rs 750000 and a loan of Rs 200000. This makes his total capital Rs 950000.
- During the year, he introduced additional capital of Rs 125000, which makes his total capital Rs 1075000.
- As of 31st March, his total assets were Rs 1500000.
- To calculate the profit or loss, we need to subtract the total liabilities and withdrawals from the total assets. The total liabilities are calculated by subtracting the total capital from the total assets. Ram withdrew Rs 40000 for personal use during the year, which needs to be subtracted from the total assets as well.
- After performing the calculation, we get a profit of Rs 1085000 for Ram's business.
Community Answer
Ram started business with capital of Rs 750000 and loan of Rs 200000.O...
Opening Capital= 750000+200000= 950000...Closing capital= op. capital + additional capital - drawings + net profit = 950000+125000-40000 + net profit = 1035000 + net profit....We know that Liabilities = Assets. So we assume that there is no other external liability. Therefore, 1035000 + net profit = Total Assets...So, net profit = 1500000 - 1035000 = 465000
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Ram started business with capital of Rs 750000 and loan of Rs 200000.On 31 March his assets were Rs 1500000.Also he introduced as capital of Rs 125000 during the year and withdraw Rs 40000 for personal use calculate profit /loss.?
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Ram started business with capital of Rs 750000 and loan of Rs 200000.On 31 March his assets were Rs 1500000.Also he introduced as capital of Rs 125000 during the year and withdraw Rs 40000 for personal use calculate profit /loss.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ram started business with capital of Rs 750000 and loan of Rs 200000.On 31 March his assets were Rs 1500000.Also he introduced as capital of Rs 125000 during the year and withdraw Rs 40000 for personal use calculate profit /loss.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ram started business with capital of Rs 750000 and loan of Rs 200000.On 31 March his assets were Rs 1500000.Also he introduced as capital of Rs 125000 during the year and withdraw Rs 40000 for personal use calculate profit /loss.?.
Ram started business with capital of Rs 750000 and loan of Rs 200000.On 31 March his assets were Rs 1500000.Also he introduced as capital of Rs 125000 during the year and withdraw Rs 40000 for personal use calculate profit /loss.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ram started business with capital of Rs 750000 and loan of Rs 200000.On 31 March his assets were Rs 1500000.Also he introduced as capital of Rs 125000 during the year and withdraw Rs 40000 for personal use calculate profit /loss.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ram started business with capital of Rs 750000 and loan of Rs 200000.On 31 March his assets were Rs 1500000.Also he introduced as capital of Rs 125000 during the year and withdraw Rs 40000 for personal use calculate profit /loss.?.
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