furnitures 10,000
d) opening balance of capital Rs 175000 and
3) The following transactions are given.
a) Commenced business with goods Rs 16000
b) goods sold for cash [tex]$R_S 8000$[/tex] (profit is 2000 )
C) goods costing Rs 2000 sold for cash at a profit of Rs 300
d) goods costing. Rs 1000 sold for cash atc
Answer (2)
Calculate the total profit from sales: 2000 + 300 = 2300 .
Add the initial capital and the value of goods used to commence business: 175000 + 16000 = 191000 .
Add the total profit to the sum from the previous step: 191000 + 2300 = 193300 .
The final capital balance is 193300 .
Explanation
Understanding the Problem We are given the initial capital, the value of goods used to commence business, and the profit from two sales transactions. We need to determine the final balance of capital.
Identifying Given Information First, let's identify the given information:
Initial capital: Rs 175000
Commenced business with goods: Rs 16000
Goods sold for cash: Rs 8000 (profit Rs 2000)
Goods costing Rs 2000 sold for cash at a profit of Rs 300
Goods costing Rs 1000 sold for cash at... (the profit is not specified, so we cannot use this information)
Calculating Total Profit Next, we calculate the total profit from the sales transactions. We have a profit of Rs 2000 from the first sale and Rs 300 from the second sale. So, the total profit is: 2000 + 300 = 2300 Thus, the total profit is Rs 2300.
Calculating Final Capital Balance Now, we add the initial capital, the value of goods used to commence business, and the total profit to find the final capital balance: 175000 + 16000 + 2300 = 193300 Therefore, the final capital balance is Rs 193300.
Final Answer The final capital balance is Rs 193300.
Examples
Imagine you are starting a small business. You begin with some initial capital and also invest goods into the business. As you make sales, you generate profit. This problem helps you calculate your final capital balance by adding your initial capital, the value of goods invested, and the total profit earned. This calculation is crucial for understanding your business's financial position and making informed decisions about future investments and expenses. By tracking these figures, you can effectively manage your resources and ensure the long-term sustainability of your business.
To find the final capital balance, we calculate the total profit from sales, which amounts to Rs 2,300. Adding the initial capital of Rs 175,000 and the value of goods worth Rs 16,000 gives a final capital balance of Rs 193,300. Thus, the overall financial position after the transactions is Rs 193,300.
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