PRC-1 · Chapter 10 · Question 94 of 100
If opening capital is Rs. 100,000, drawings are Rs. 15,000, and closing capital is Rs. 120,000 (with no new capital introduced), what is the Net Profit for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 35,000
Explanation
Closing Capital = Opening Capital + Net Profit - Drawings. 120,000 = 100,000 + Net Profit - 15,000. Net Profit = 120,000 - 100,000 + 15,000 = Rs. 35,000.
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