If capital at the end of the year is Rs. 7,000, capital introduced during the year is Rs. 5,000, drawings during the year are Rs. 8,000, loss incurred during the year is Rs. 10,000, then capital in the beginning would be equal to.
A
Rs. 12,000
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B
Rs. 16,000
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C
Rs. 20,000
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D
Rs. 30,000
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Solution
The correct option is D Rs. 20,000 Capital at the end of year = Rs. 7000 Less-capital introduced during the year =Rs. 5000 Add-Drawings made during the year =Rs. 8000 Add-Loss incurred during the year=Rs. 10,000 Capital at the beginning of the year=Rs. 20,000.