Question

Mr. A had a beginning credit balance of Rs. 21,000 in his capital account.At the close of the period his drawing account had a debit balance of Rs. 2,200. On the end-of-period balance sheet, his capital balance is Rs. 32,000. If he contributed an additional Rs. 2,000 to the firm during the period, the period's net income is _______________.

• A. Rs. 12,400
• B. Rs. 11,200
• C. Rs.9,000
• D. Rs.10,800

Answer 1

The correct option is B Rs. 11,200

32000 - 21000 = 11000

and, 2200 - 2000 = 200

so, here

11000 + 200 = 11200.