Question

ABC Associates is not maintaining full-fledged accounts on Double entry system basis. From the following details estimate the profit made by the firm during $2013-14$.
Capital as on $1-04-2013$ Rs. $90,000$
Capital added during the year Rs. $25,000$
Drawing during the year Rs. $35,000$
Capital as on $31-3-2014$ Rs. $1,25,000$.

• A. Rs. $50,000$
• B. Rs. $60,000$
• C. Rs. $75,000$
• D. Rs. $45,000$

Answer 1

Answer: (D)

Rs. $45,000$

Profits during the Year 2013-14

Closing Capital (as on 31-03-2014) 1,25,000

Add: Drawing during the year 35,000

Less: Capital added during the year 25,000

Less: Opening Capital (as on 01-04-2014) 90,000

Net Profit during the year 45,000