Question

Opening capital = Rs. 15,000, Closing capital = Rs. 25,000, Capital added during the year = Rs. 10,000, Drawings = Rs. 4,000. Profit during the year will be Rs. ___.

• A. Rs. 6,000
• B. Rs. 8000
• C. Rs. 4000
• D. None of these

Answer 1

The correct option is C Rs. 4000

Profit
= Opening Capital + Addition of capital - Drawings - Closing Capital
= Rs. 15,000 + Rs. 10,000 - Rs. 4,000 - 25,000
= Rs. 4,000