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A starts a business and invests rupee 50,000 on 1st April 2016. On 31st march 2017 his assests are rupee 65,000 and liabilities are rupee 6,000. Find out the amount of capital on 31st March 2017 and his profit. B) In the above case,if the proprietor had invested rupee 5,000 as additional capital and withdrawn rupee 2,000, what will be your answer?If A had withdrawn from his business rupee 3,000 for personal use, find out the profit in this case. Accounting equation Class11th?
Verified Answer
A starts a business and invests rupee 50,000 on 1st April 2016. On 31s...
Capital 59000

Profit 9000

Explanation:

Capital as on 31 march,2018 65000-6000 equals 59000.

Profit=Closing Capital - Opening Capital

59000-50000=9000
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Most Upvoted Answer
A starts a business and invests rupee 50,000 on 1st April 2016. On 31s...
Accounting Equation

  • The accounting equation is assets = liabilities + owner's equity.

  • It means that the assets of a business are equal to its liabilities and owner's equity.



Case 1: Initial Investment and Yearly Profit

  • A invested rupee 50,000 on 1st April 2016.

  • On 31st March 2017, his assets were rupee 65,000 and liabilities were rupee 6,000.

  • Using the accounting equation, we can find the amount of capital on 31st March 2017:


    • Assets = Liabilities + Owner's Equity

    • 65,000 = 6,000 + Owner's Equity

    • Owner's Equity = 59,000


  • The profit for the year would be:


    • Profit = Assets - Liabilities - Capital

    • Profit = 65,000 - 6,000 - 50,000

    • Profit = 9,000




Case 2: Additional Investment and Withdrawals

  • If A invested an additional rupee 5,000 and withdrew rupee 2,000, then the capital on 31st March 2017 would be:


    • Capital = Previous Capital + Additional Investment - Withdrawals

    • Capital = 50,000 + 5,000 - 2,000

    • Capital = 53,000


  • If A had withdrawn rupee 3,000 for personal use, then the profit for the year would be:


    • Profit = Assets - Liabilities - Capital - Drawings

    • Profit = 65,000 - 6,000 - 53,000 - 3,000

    • Profit = 3,000




Explanation

  • The accounting equation is a basic principle of accounting that shows the relationship between a company's assets, liabilities, and owner's equity.

  • Assets are things that the company owns, such as cash, inventory, and property.

  • Liabilities are obligations that the company owes to others, such as loans and accounts payable.

  • Owner's equity is the amount of money that the owner has invested in the company, plus any profits that the company has earned.

  • The accounting equation must always balance, which means that the total assets must be equal to the total liabilities and owner's equity.

  • By using the accounting equation, we can calculate the amount of capital and profit for a business.

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A starts a business and invests rupee 50,000 on 1st April 2016. On 31st march 2017 his assests are rupee 65,000 and liabilities are rupee 6,000. Find out the amount of capital on 31st March 2017 and his profit. B) In the above case,if the proprietor had invested rupee 5,000 as additional capital and withdrawn rupee 2,000, what will be your answer?If A had withdrawn from his business rupee 3,000 for personal use, find out the profit in this case. Accounting equation Class11th?
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A starts a business and invests rupee 50,000 on 1st April 2016. On 31st march 2017 his assests are rupee 65,000 and liabilities are rupee 6,000. Find out the amount of capital on 31st March 2017 and his profit. B) In the above case,if the proprietor had invested rupee 5,000 as additional capital and withdrawn rupee 2,000, what will be your answer?If A had withdrawn from his business rupee 3,000 for personal use, find out the profit in this case. Accounting equation Class11th? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about A starts a business and invests rupee 50,000 on 1st April 2016. On 31st march 2017 his assests are rupee 65,000 and liabilities are rupee 6,000. Find out the amount of capital on 31st March 2017 and his profit. B) In the above case,if the proprietor had invested rupee 5,000 as additional capital and withdrawn rupee 2,000, what will be your answer?If A had withdrawn from his business rupee 3,000 for personal use, find out the profit in this case. Accounting equation Class11th? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A starts a business and invests rupee 50,000 on 1st April 2016. On 31st march 2017 his assests are rupee 65,000 and liabilities are rupee 6,000. Find out the amount of capital on 31st March 2017 and his profit. B) In the above case,if the proprietor had invested rupee 5,000 as additional capital and withdrawn rupee 2,000, what will be your answer?If A had withdrawn from his business rupee 3,000 for personal use, find out the profit in this case. Accounting equation Class11th?.
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