You can use a common method involving 1's compliment, in which the binary number is inverted and then added, which overall gives subtraction. E.g. 8+3 =>> 810 = 10002 and 310 = 00112. 1's compliment would give -310 = 11002, as this inverts 3. this means that the 0s change to a 1 and the 1s change to a 3. you can now either add these binary numbers together and add 1 at the end, or use 2's compliment instead of 1's compliment, where a 1 is added to the inverted 3 now. so -310 becomes 11012. addition gives 1000
1101
10101 the underlined 1 is discarded by the machine as the stored value is only a 4 bit value, which means the answer here is 5.