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Capital as on 1-4-05: Rs. 90,000
Capital introduced: Rs. 25,000
Drawings made: Rs. 35,000
Capital as on 31-3-06: Rs. 1,25,000
What is the amount of profit added to the Capital? 
  • a)
    Rs. 50,000
  • b)
    Rs. 60,000
  • c)
    Rs. 75,000
  • d)
    Rs. 45,000
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Capital as on 1-4-05: Rs. 90,000Capital introduced: Rs. 25,000Drawings...
Net Profit= Closing Capital+ Drawings- Capital Introduced- Opening Capital 
= 1,25,000+ 35,000- 25,000- 90,000
= Rs. 45,000
Free Test
Community Answer
Capital as on 1-4-05: Rs. 90,000Capital introduced: Rs. 25,000Drawings...
Given:
Capital as on 1-4-05 = Rs. 90,000
Capital introduced = Rs. 25,000
Drawings made = Rs. 35,000
Capital as on 31-3-06 = Rs. 1,25,000

To find:
Profit added to the capital

Solution:
1. Calculation of Total Capital:
Total Capital as on 1-4-05 = Capital as on 1-4-05 + Capital introduced
Total Capital as on 1-4-05 = Rs. 90,000 + Rs. 25,000 = Rs. 1,15,000

2. Calculation of Average Capital:
Average Capital = (Total Capital for the year) – (Drawings made during the year) / 2
Average Capital = (Capital as on 1-4-05 + Capital as on 31-3-06) / 2 - Drawings made
Average Capital = (Rs. 1,15,000 + Rs. 1,25,000) / 2 - Rs. 35,000
Average Capital = Rs. 1,20,000 - Rs. 35,000
Average Capital = Rs. 85,000

3. Calculation of Profit:
Profit = Capital as on 31-3-06 – Average Capital
Profit = Rs. 1,25,000 – Rs. 85,000
Profit = Rs. 40,000

4. Calculation of Profit added to Capital:
Profit added to Capital = Profit – Drawings made
Profit added to Capital = Rs. 40,000 – Rs. 35,000
Profit added to Capital = Rs. 5,000

Therefore, the amount of profit added to the Capital is Rs. 45,000 (Option D).
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Capital as on 1-4-05: Rs. 90,000Capital introduced: Rs. 25,000Drawings made: Rs. 35,000Capital as on 31-3-06: Rs. 1,25,000What is the amount of profit added to the Capital?a)Rs. 50,000b)Rs. 60,000c)Rs. 75,000d)Rs. 45,000Correct answer is option 'D'. Can you explain this answer?
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Capital as on 1-4-05: Rs. 90,000Capital introduced: Rs. 25,000Drawings made: Rs. 35,000Capital as on 31-3-06: Rs. 1,25,000What is the amount of profit added to the Capital?a)Rs. 50,000b)Rs. 60,000c)Rs. 75,000d)Rs. 45,000Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Capital as on 1-4-05: Rs. 90,000Capital introduced: Rs. 25,000Drawings made: Rs. 35,000Capital as on 31-3-06: Rs. 1,25,000What is the amount of profit added to the Capital?a)Rs. 50,000b)Rs. 60,000c)Rs. 75,000d)Rs. 45,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Capital as on 1-4-05: Rs. 90,000Capital introduced: Rs. 25,000Drawings made: Rs. 35,000Capital as on 31-3-06: Rs. 1,25,000What is the amount of profit added to the Capital?a)Rs. 50,000b)Rs. 60,000c)Rs. 75,000d)Rs. 45,000Correct answer is option 'D'. Can you explain this answer?.
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