Under single entry system "profit" = closing capital - _________________.

Opening capital

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Opening assets

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Opening liabilities

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Drawings

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Solution

The correct option is A Opening capital
Suppose Opening Capital (i.e capital on the 1st day of financial year) is Rs. 50,000 and Closing Capital ( i.e capital on the last day of financial year ) is Rs. 70,000. the resulting difference is more by Rs. 20000 indicating a positive increment in capital called Profit.

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Similar questions

Can a limited company maintain its accounts under single entry system ?

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

(a) Loss

(b) Profit

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

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