Find out the Profit or Loss from the following data :

| Particulars | Amount |
| --- | --- |
| Capital at the beginning of the year | ₹ 50,000 |
| Drawings during the year | ₹ 6,500 |
| Additional Capital during the year | ₹ 7,500 |
| Capital at the end of the year | ₹ 60,000 |

Question

Find out the Profit or Loss from the following data :

| Particulars | Amount |
| --- | --- |
| Capital at the beginning of the year | ₹ 50,000 |
| Drawings during the year | ₹ 6,500 |
| Additional Capital during the year | ₹ 7,500 |
| Capital at the end of the year | ₹ 60,000 |

Accepted Answer

>

> [!TLDR]
> In the single-entry Net Worth method, profit is the increase in capital adjusted for drawings and additional capital. Add drawings back to closing capital (they reduced capital but are not a loss) and subtract any additional capital brought in (it increased capital but is not a profit); then deduct opening capital. Here the result is a profit of Rs 9,000.
>
> **Statement of Profit or Loss (Net Worth Method)**
>
> | Particulars | Amount (Rs) |
> | --- | --- |
> | Capital at the end of the year | 60,000 |
> | Add: Drawings during the year | 6,500 |
> | | 66,500 |
> | Less: Additional capital introduced | 7,500 |
> | Adjusted closing capital | 59,000 | …

Particulars	Amount
Capital at the beginning of the year	₹ 50,000
Drawings during the year	₹ 6,500
Additional Capital during the year	₹ 7,500
Capital at the end of the year	₹ 60,000

Particulars	Amount (Rs)
Capital at the end of the year	60,000
Add: Drawings during the year	6,500
	66,500
Less: Additional capital introduced	7,500
Adjusted closing capital	59,000

🎓Unlock everything free for 14 days

Unlock everything free for 14 days