Note:
1. Rent paid will reduce cash by ₹200 Rent being an expense will reduce profit by ₹200. Thus , capital will be reduced bu ₹200.
2. Interest recived form Bank will increase Bank Blance . It being an income will increase profit by ₹100. Thus, capital will be increased.
3. Stock will be reduced by ₹500 and Debtors will be increased by ₹700. Capital will be increased by ₹200 (i.e., ₹700- ₹500) being profit.
4. As expalined in Note 1.
