Yogesh commenced business on 1st April, 2017 with a Capital of ₹ 5,00,000 and a loan of ₹ 1,00,000 borrowed from Citi Bank. On 31st March, 2018, his assets were ₹ 8,00,000

Yogesh commenced business on 1st April, 2017 with a Capital of ₹ 5,00,000 and a loan of ₹ 1,00,000 borrowed from Citi Bank. On 31st March, 2018, his assets were ₹ 8,00,000. Calculate his closing capital and profits earned during the year.

(b) If in the above case, the proprietor had introduced fresh capital of ₹ 40,000 and had withdrawn ₹ 10,000 for personal purposes, calculate his profits.

[Ans. (a) Closing Capital ₹ 7,00,000; Profit ₹ 2,00,000. (b) Profit ₹ 1,70,000.]