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Goods costing Rs 25,000 are sold on credit for Rs 35,000. Capital rises by:

ARs 35,000
BRs 25,000
CRs 60,000
DRs 10,000
Answer & Solution
Correct answer: D. Rs 10,000
Debtors rise by 35,000 while stock falls by 25,000; the profit of 10,000 is added to capital.
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