Sometimes, two or more transactions relating to one particular account take place on the same date. In such cases, instead of passing separate entries for all such transactions, only one entry is passed. Such a Journal entry is termed as Compound Journal Entry.
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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During the year, the proprietor had introduced capital of $₹ 20,000$ and withdrawn $₹ 12,000$ for personal use.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, $2018.$
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 During $2018-19$ he had introduced additional capital of $₹ 12,500$ and had withdrawn $₹ 7,500$ for personal use.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 $2018-19$.