Mohan started a business on 1st April, 2021 with a capital of ₹ 10,000 and borrowed ₹ 3,000 from a friend

(a) Mohan started a business on 1st April, 2021 with a capital of ₹ 10,000 and borrowed ₹ 3,000 from a friend. He earned a profit of ₹ 5,000 during the year ended 31st March, 2022 and withdrew cash ₹ 4,000 for personal use. What is his capital on 31st March, 2022?

[₹ 11,000.]

(b) Mahesh started a business with a capital of ₹ 15,000 on 1st April, 2021. During the year, he made a profit of ₹ 3,000. He owes ₹ 2,500 to suppliers of goods. What is the total of assets in his business on 31st March, 2022?

[₹ 20,500.]