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Mr Manu started a business with the capital 4 lakh on 1st October 2005 he borrowed from his friend as some of 1 lakh he brought additional capital 75000 on 31st March 2006 the position on his business as on 31st March 2016 is follow cash 30000 stock 470000 debtors 350000 and credictor 3 lakh he w 8000 per month during the period calculate profit or loss for the period?
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Mr Manu started a business with the capital 4 lakh on 1st October 2005...
Initial Investment
- Mr. Manu's initial capital: 4,00,000
- Amount borrowed from a friend: 1,00,000
- Additional capital introduced on 31st March 2006: 75,000
Total Capital Invested
- Total capital by 31st March 2006: 4,00,000 + 1,00,000 + 75,000 = 5,75,000
Business Position as of 31st March 2016
- Cash: 30,000
- Stock: 4,70,000
- Debtors: 3,50,000
- Creditors: 3,00,000
Current Assets Calculation
- Total current assets: Cash + Stock + Debtors
- Total current assets: 30,000 + 4,70,000 + 3,50,000 = 4,90,000
Current Liabilities Calculation
- Total current liabilities: Creditors
- Total current liabilities: 3,00,000
Net Assets Calculation
- Net assets = Total current assets - Total current liabilities
- Net assets = 4,90,000 - 3,00,000 = 1,90,000
Capital Gains Calculation
- Total capital invested: 5,75,000
- Closing net assets: 1,90,000
Profit or Loss Determination
- Profit or Loss = Closing Net Assets - Total Capital Invested
- Profit or Loss = 1,90,000 - 5,75,000 = -3,85,000
Conclusion
- Mr. Manu incurred a loss of 3,85,000 during the period from October 2005 to March 2016.
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Mr Manu started a business with the capital 4 lakh on 1st October 2005 he borrowed from his friend as some of 1 lakh he brought additional capital 75000 on 31st March 2006 the position on his business as on 31st March 2016 is follow cash 30000 stock 470000 debtors 350000 and credictor 3 lakh he w 8000 per month during the period calculate profit or loss for the period?
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Mr Manu started a business with the capital 4 lakh on 1st October 2005 he borrowed from his friend as some of 1 lakh he brought additional capital 75000 on 31st March 2006 the position on his business as on 31st March 2016 is follow cash 30000 stock 470000 debtors 350000 and credictor 3 lakh he w 8000 per month during the period calculate profit or loss for the period? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Mr Manu started a business with the capital 4 lakh on 1st October 2005 he borrowed from his friend as some of 1 lakh he brought additional capital 75000 on 31st March 2006 the position on his business as on 31st March 2016 is follow cash 30000 stock 470000 debtors 350000 and credictor 3 lakh he w 8000 per month during the period calculate profit or loss for the period? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr Manu started a business with the capital 4 lakh on 1st October 2005 he borrowed from his friend as some of 1 lakh he brought additional capital 75000 on 31st March 2006 the position on his business as on 31st March 2016 is follow cash 30000 stock 470000 debtors 350000 and credictor 3 lakh he w 8000 per month during the period calculate profit or loss for the period?.
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