PRC-1 · Chapter 1 · Question 87 of 100
At the start of the year, Mr. Tariq's capital was Rs. 200,000. During the year, the business made a net profit of Rs. 60,000, and Mr. Tariq withdrew Rs. 15,000 for personal use. What is the closing capital balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 245,000
Explanation
Closing Capital is calculated as Opening Capital (200k) + Net Profit (60k) - Drawings (15k) = Rs. 245,000.
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