Question

If opening capital is Rs$,60,000$, drawings Rs$5,000$, capital introduced during the period Rs $10,000$,closing capital Rs$90,000$. The value of profit earned during the period will be ______________.

• A. Rs$20,000$
• B. Rs$25,000$
• C. Rs$30,000$
• D. Rs$40,000$

Answer 1

The correct option is B Rs$25,000$

Particulars	Amt.(Rs)
Closing Capital	$90,000$
(+) Drawings	$5,000$ = $95,000$
(-) Opening Capital	$60,000$
(-) Additional Capital	$10,000$
Profit earned during the period	$25,000$