An owner starts the year with capital of Rs 200,000, introduces further capital of Rs 20,000, earns a net profit of Rs 50,000 and withdraws Rs 30,000. What is the closing capital?
Correct answer C. Rs 240,000
Explanation
Closing capital = opening capital + additional capital + profit - drawings = 200,000 + 20,000 + 50,000 - 30,000 = Rs 240,000.
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