alleryStart learning →Closing capital is Rs 1,50,000, opening capital Rs 1,60,000, additional capital Rs 25,000 and drawings Rs 30,000. The result for the year is:
AA profit of Rs 5,000
BA loss of Rs 5,000
CA profit of Rs 15,000
DA loss of Rs 35,000
Answer & Solution
Correct answer: B. A loss of Rs 5,000
1. Take the closing capital of Rs 1,50,000 as the base.
2. Add drawings of Rs 30,000 to get Rs 1,80,000.
3. Subtract additional capital of Rs 25,000, giving an adjusted closing capital of Rs 1,55,000.
4. Subtract the opening capital of Rs 1,60,000, which gives minus Rs 5,000.
5. A negative difference denotes a loss, so the year produced a loss of Rs 5,000; the textbook writes such a figure with a bracketed minus sign.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 1 "Accounts from Incomplete Records", Illustration 2_
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