Question

Particulars	Rs.
Opening capital	$16,000$
Investment by proprietor	Nil
Drawings	$3,000$
Capital at the end	$13,500$
Net Profit/(Loss)	?

If in the given information, Net Loss is Rs. $1,000$, then the investment made by the proprietor during the year will be _______________.

• A. Rs. $1,500$
• B. Rs. $2,000$
• C. Rs. $1,200$
• D. Rs. $1,700$

Answer 1

The correct option is A Rs. $1,500$

Solution to the given problem can be presented as:

Opening Capital+Profit+Invested by proprietor-Drawings $=$ Closing Capital

Rs.16000+(-1000) +Invested by proprietor -Rs.3000=Rs.13500

$Rs.12000+Investment=Rs.13500$

Investment $=Rs.13500-12000$

Investment made by proprietor $=Rs.1500$