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The following balances relates to a business for the year ended 31st Dec 2000. Capital as at 31st Dec 2000 ...

      

The following balances relates to a business for the year ended 31st Dec 2000.
Capital as at 31st Dec 2000 170,000
Drawings for the year 5,000
Net profit for the year 5,000
Extra capital introduced 52,000
Purchases 20,000
i) Determine the amount of capital as at 1st Jan 2001.
ii) Calculate the Net profit ratio

  

Answers


sharon
i) Capital = ( opening capital + Extra capital introduced + net profit)
- Drawings.
= ( 170,000 + 52,000 + 5000) - 5000
= 227,000 – 5000
= 222,000
ii) Net profit ratio.
NPR = Net Profit/Sales x 100
Sales = Net profit + purchases
= 5,000 + 20,000 = 25,000
= N.P.R = 5000/25,000 x 100 = 20%
sharon kalunda answered the question on March 4, 2019 at 10:59


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