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Question 4 Chapter 3 – Unimax Publications of Class 11
4. A commenced his cloth business on 1st April, 2020 with a capital of Rs. 22,500. On 31st March, 2021 his assets were Rs. 37,500 and Liabilities were Rs. 7,500. Find out his closing capital and profits earned during the year.
The solution of Question 4 Chapter 3 – Unimax Publications of Class 11
| Total Assets | = Capital + Liabilities |
| 37,500 | = Capital + 7,500 |
| Capital | = 37,500 – 7,500 |
| = 30,000 | |
| Profit | = Closing Capital – Opening Capital |
| =30,000-22,500 | |
| = 7,500 |
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