wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Under the net worth method, the basis for ascertaining profit or loss is the difference between _______________.

A
Gross assets on two dates
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Net assets on two dates
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Capital on two dates
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
D
Liabilities on two dates
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is C Capital on two dates
Profit or loss earned by the business under single entry system is based on the difference between its Opening and closing capital.
Opening Capital is the capital on 1st Day of financial year
Closing Capital is the capital on last Day of financial year
if Closing capital is More it indicates Profit and vice-versa
hence to ascertain Profit or loss under this method difference if two dates are taken.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Issued at Par and Redeemed at Par
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon