1.

From the following particulars , prepare the account of D . Budhiraja , the proprietor of a business : {:(,,,"₹"),((i), "Capital introduced" ,, 30","000), ((ii), "Drawings made by him" ,, 6","500) , ((iii) ,"Further Capital introduced" ,, 22","000), ((iv) ,"Profits for the period " ,, 7","500):} Balance the same and explain what the closing balance indicates.

Answer»

Solution :
NOTE : Proprietor's Capital Account has a credit balance of ₹ 53,000 which INDICATES that the business OWES him this AMOUNT .


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