Ayush started business on 1st April, 1995 with a capital of Rs. 25,000 and a loan of Rs. 12,500. Total assets and liabilities at the end of 31st March, 1996 amounted to Rs. 75,000 and Rs. 12,500 respectively. He invested a further capital of Rs. 12,500 during the year and withdrew Rs. 7,500 during the relevant financial, period. His closing capital and profits would be respectively:
A. Rs. 62,500 and Rs. 32,500
B. Rs. 50,000 and Rs. 40,000
C. Rs. 70,000 and Rs. 47,500
D. Rs. 55,000 and Rs. 42,500
Answer: Option A
This Question Belongs to Commerce >> Accounting
Join The Discussion