Mohan started a business on $1^{\text {st }}$ April, $2018$ with a capital of $₹ 25,000$ and a loan of $₹ 12,500$ borrowed from Shyam. During $2018-19$ he had introduced additional capital of $₹ 12,500$ and had withdrawn $₹ 7,500$ for personal use. On $31^{\text {st }}$ March, $2019$ his assets were $₹ 75,000$ . Find out his capital as on $31^{\text {st }}$ March, $2019$ and profit made or loss incurred during the year $2018-19$.
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Capital on March $31, 2019$ = Assets - Loan from Shyam
$= 75,000 - 12,500 = ₹ 62,500$
Profit (or Loss) during the year $2018-19 =$ Capital on March $31, 2019 +$ Drawings$ - ($Additional Capital + Capital on April $01, 2018)$
$= 62,500 + 7,500 - (12,500 + 25,000)$
$= 70,000 - 37,500 $
$= ₹ 32,500$
$= 75,000 - 12,500 = ₹ 62,500$
Profit (or Loss) during the year $2018-19 =$ Capital on March $31, 2019 +$ Drawings$ - ($Additional Capital + Capital on April $01, 2018)$
$= 62,500 + 7,500 - (12,500 + 25,000)$
$= 70,000 - 37,500 $
$= ₹ 32,500$
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