Question

Vikas maintains his books of account on Single Entry System. He provides following information from his books. Find out additional capital introduced in the business during the year 2012-13.

Opening Capital – Rs.1,30,000

Drawing during the year Rs.50,000

Closing Capital – Rs.2,00,000

Profit made during the year Rs.1,00,000

Answer 1

Additional Capital

= Capital at the End + Drawings – (Capital in the Beginning + Profit)

= 2,00,000 + 50,000 – (1,30,000 + 1,00,000)

= 2,50,000 – 2,30,000 = Rs.20,000