Profit = Capital at the end+______- Capital introduced - Capital in the beginning.

Sales

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Drawings

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Loan

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Net Purchases

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Solution

The correct option is C Drawings
Profit is calculated by the taking into account the fluctuations of the capital at the beginning and at the end of the year, by adding the drawings, and deducting the capital introduced to the capital at the end of the year.

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Similar questions

Items	(Rs)
Capital at the end of the year	$5, 00, 000$
Capital in the beginning of the year	$7, 50, 000$
Drawings made during the period	$3, 75, 000$
Additional Capital introduced	$50, 000$

If opening capital is less than closing capital, it shows:

(a) Loss

(b) Profit

(d) Profit, if no additional capital is introduced.

40, 000

1000

200

53, 600

	₹
Capital at the end of the year	24,00,000
Drawing Made during the year : ₹ 10,000 per month
Fresh Capital introduced during the year	4,00,000
Profit of the current year	6,60,000

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