Question

Yes Associates is not maintaining full-fledged accounts on Double entry system basis. From the following details estimate the drawing of the firm during $2013-14$
Capital as on $1-4-2013$ Rs. $1,00,000$
Capital added during the year Rs. $20,000$
Profit credited to capital A/c during the year Rs. $35,000$
Capital as on $31-3-2014$ Rs. $1,25,000$.

• A. Rs. $50,000$
• B. Rs. $30,000$
• C. Rs. $35,000$
• D. Rs. $45,000$

Answer 1

The correct option is B Rs. $30,000$

Ending balance of capital account = Opening balance of capital account + Capital addition during the year + Profit - Drawing

Drawing = Opening balance of capital account + Capital addition during the year + Profit - Ending balance of capital account

Drawing = Rs. 1,00,000 + Rs. 20,000 + Rs. 35,000 - Rs. 1,25,000

Drawing = Rs. 30,000