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Profit Determination and Statement of Profit
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To ascertain the profit, closing capital is to be adjusted by deducting ________ and adding _________.
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A
Opening capital, Drawings
💡 Explanation:
To ascertain the profit, closing capital is to be adjusted by deducting opening capital and adding drawings.
Below is the example:
Opening Capital Rs.30000
Drawings Rs.5000
Closing Capital Rs.50000
Solution:
Closing Capital Rs.50000
Add: Drawing Rs. 5000
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Rs.55000
Less: Opening Capital Rs.30000
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Profit during the year Rs.25000
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