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Question
Select the most appropriate answer the alternatives given below and rewrite the Sentence
In statement of profit or loss interest on Capital in shown as _____________.
Options
addition
subtraction
ignored
multiplied
Solution
In statement of profit or loss interest on Capital in shown as subtraction.
Explanation: Under net worth method, if interest on capital is provided, then it is shown by way of deduction (or subtraction) from the closing capital.
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Under Single Entry System, additional capital brought in during the year is _____ closing capital in order to calculate profit.
Answer in one sentence only.
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Further capital introduced during the year is _______________ from closing capital in order to find-out the correct profit.
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If Opening Capital is Rs 40,000, Closing Capital is 90,000 Rs, Withdrawals is Rs 5,000 and additional Capital brought in is Rs 10,000 Profit is Rs ______________.
