(a) Surender Mohan started business on 1st April, 2011 with Capital of Rs. 7,50,000 and a loan of Rs. 2,00,000 taken from Punjab National Bank. On 31 st March, 2012 his assets were Rs.15,00,000. Find out his Capital on 31st March, 2012 and profit made or losses incurred during the year 2011-12.
(b) If in the above illustration, the proprietor had introduced additional capital of Rs. 1,25,000 and had withdrawn Rs. 40,000 for personal purposes, find out the profit.

Explanation

`{:((a),"Closing Capital",=,"Closing Liabilities"),(,,=,"Rs.15,00,000 - Rs.2,00,000"),(,,=,"Rs.13,00,000"),(,"Profit",=,"Closing Capital- Opening Capital"),(,,=,"Rs.13,000,000 - Rs.7,50,000"),(,,=,"Rs.5,50,000"),((b),"Profit",=,"Closing Capital + Drawing - Additional - Additional Capital - Opening Capital"),(,,=,"Rs.13,00,000 + Rs. 40,000 - Rs.1,25,000 - Rs.7,50,000"),(,,=,"Rs.4,65,000"):}`