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Question

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.

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