On $31^{\text {st }}$ March, $2019,$ the total assets and external liabilities were $₹ 2,00,000$ and $₹ 6,000$ respectively.
During the year, the proprietor had introduced capital of $₹ 20,000$ and withdrawn $₹ 12,000$ for personal use. He made a profit of $₹ 20,000$ during the year. Calculate the capital as on $1^{\text {st }}$ April, $2018.$
During the year, the proprietor had introduced capital of $₹ 20,000$ and withdrawn $₹ 12,000$ for personal use. He made a profit of $₹ 20,000$ during the year. Calculate the capital as on $1^{\text {st }}$ April, $2018.$
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Capital as on March $31, 2019$ = Total Assets - External Liabilities
$= 2,00,000 - 6,000 = ₹ 1,94,000$
Capital on April $01, 2018$ = Capital on March $31, 2019$ - Additional Capital + Drawings - Profit
$= 1,94,000 - 20,000 + 12,000 - 20,000 = ₹ 1,66,000$
$= 2,00,000 - 6,000 = ₹ 1,94,000$
Capital on April $01, 2018$ = Capital on March $31, 2019$ - Additional Capital + Drawings - Profit
$= 1,94,000 - 20,000 + 12,000 - 20,000 = ₹ 1,66,000$
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