Question

Select the most appropriate answer the alternatives given below and rewrite the Sentences.

If Opening Capital is Rs 40,000, Closing Capital is 90,000 Rs, Withdrawals is Rs 5,000 and additional Capital brought in is Rs 10,000 Profit is Rs ______________.
a) 45,000
b) 55,000
c) 35,000
d) 75,000

Answer 1

If Opening Capital is Rs 40,000, Closing Capital is Rs 90,000, Withdrawals is Rs 5,000 and additional Capital brought in is Rs 10,000 Profit is Rs 45,000.

Explanation: Closing Capital = Opening Capital + Profit – Withdrawals + Additional Capital Introduced

Putting the respective values, we get:
90,000 = 40,000 + profit – 5,000 + 10,000
Profit = 90,000 – 45000 = 45,000