Question

Find the total assets at the end of the year if net profit, drawing during the year and assets at the of beginning of the year were 12,000, 7000 and 20,000 respectively.

• A. 25,000
• B. 15,000
• C. 9,000
• D. 8,000

Answer 1

Answer: (A)

25,000

Calculation of total assets at the end of the year :-

Assets in the beginning of the year =Rs 20000

Less : Drawing made during the year (7000)

Add : Net profit for the year 12000

= Rs 25000