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X started a business on 1st January 2016 with capital of rupees 500000. On 31st December 2016 his books shows total assets and total liabilities rupees 850000 and rupees 75000 respectively. He withdrew rupees 120000 during the year. His closing capital and profit would be :-?
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X started a business on 1st January 2016 with capital of rupees 500000...
Calculation of X's Closing Capital and Profit


Initial Investment


  • Capital invested by X on 1st January 2016 = Rs. 500000



Withdrawals


  • Withdrawals made by X during the year = Rs. 120000



Assets and Liabilities


  • Total assets as on 31st December 2016 = Rs. 850000

  • Total liabilities as on 31st December 2016 = Rs. 75000



Calculation of X's Closing Capital

To calculate X's closing capital, we need to subtract his withdrawals and liabilities from his total assets.
Closing Capital = Total Assets - Withdrawals - Liabilities
Closing Capital = Rs. 850000 - Rs. 120000 - Rs. 75000
Closing Capital = Rs. 655000

Calculation of X's Profit

To calculate X's profit, we need to find the difference between his closing capital and his initial investment. Additionally, we need to add any income earned during the year.
Profit = Closing Capital - Initial Investment + Income
Profit = Rs. 655000 - Rs. 500000 + Income
Profit = Rs. 155000 + Income

Therefore, X's closing capital is Rs. 655000 and his profit is Rs. 155000 plus any additional income earned during the year.
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X started a business on 1st January 2016 with capital of rupees 500000. On 31st December 2016 his books shows total assets and total liabilities rupees 850000 and rupees 75000 respectively. He withdrew rupees 120000 during the year. His closing capital and profit would be :-?
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X started a business on 1st January 2016 with capital of rupees 500000. On 31st December 2016 his books shows total assets and total liabilities rupees 850000 and rupees 75000 respectively. He withdrew rupees 120000 during the year. His closing capital and profit would be :-? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about X started a business on 1st January 2016 with capital of rupees 500000. On 31st December 2016 his books shows total assets and total liabilities rupees 850000 and rupees 75000 respectively. He withdrew rupees 120000 during the year. His closing capital and profit would be :-? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X started a business on 1st January 2016 with capital of rupees 500000. On 31st December 2016 his books shows total assets and total liabilities rupees 850000 and rupees 75000 respectively. He withdrew rupees 120000 during the year. His closing capital and profit would be :-?.
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