Goods worth Rs.10,000 are sold for Rs.14,000. The value of capital will by .

increase

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decrease

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Rs.4,000

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Rs.14,000

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Solution

The correct options are
A increase
C Rs.4,000
Since goods worth Rs.10,000 are sold, it is considered as an expense. Also, Rs.14,000 is received; it is regarded as an income. So the value of capital will be increased by Rs.14,000 and reduced by Rs.10,000 giving a net impact of increase by Rs.4,000 (14,000 - 10,000).

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