Question

Aman Industries is not maintaining a full fledged account on a double entry system basis. During the year 13 - 14, there was a major fire which gutted the entire records of the firm. From the following details estimate the capital of the firm as on 31 - 03 - 14.
Capital as on 01 - 04 - 13 Rs.1,20,000.
Capital added during the year Rs.20,000.
Cash drawn during the year Rs. 36,000.
Goods worth Rs.15,000 taken away by the proprietor for self-use.
Profit transferred to capital account during the year Rs.40,000.

Answer 1

Hint: For solving this question you should know about the general mathematical calculations and concept of submission and subtraction in such a way that can be easily applied on any condition. In this problem we will first understand every event that has happened during the entire time period and then we will solve this by applying the sum and subtraction according to the given situation.

Complete step by step answer:
According to our question it is asked to us to find the final capital of the firm after all the events have happened. If we see our question, then it is clear that there are many events on different-different dates. During the year 13 - 14, there was a major fire which gutted the entire records of the firm. But from the available details it is found that the total capital was Rs.,120,000 on 01 - 04 - 13.
Now the capital added during the year was Rs.20,000.
So, the total capital was now = 1,20,000 + 20,000 = Rs.1,40,000.
Then the cash drawing during the year was Rs.36,000.
So, the capital now was = 1,40,000 - 36,000 = Rs.1,04,000.
And the amount taken by the proprietor for self-use was Rs.15,000.
SO, now the capital becomes = 1,04,000 - 15,000 = Rs.89,000.
And then the profit transferred to the capital account during the year was Rs.40,000.
So, the final capital was = 89,000 + 40,000 = Rs.1,29,000.
So, the final capital is Rs.1,29,000.

Note: While solving these types of questions you have to ensure that all the conditions of the events are related to each other or not. If they are not connected with each other then leave those un-matched events. And only focus on the events which are relevant to the main event of the question.