. Opening capital Rs 20000 Closing Capital


Rs 10,000, Profit during the year Rs. 5,000, Additional Capital introduced Rs. 1,000, Drawings will be .

A: Rs. 16,000

B: Rs. 18,000

C: Rs. 23,000

D: Rs. 25,000

 

Best Answer

Explanation:

The amount of drawings can be calculated by adding opening capital, profit and additional

capital and then subtracting the amount of closing capital from the resulting figure. 

The amount of drawings are:

Drawings = Opening capital + Profit + Additional Capital -Closing Capital

=20000+5000+1000-10000

=26000-10000

=Rs.16000

Final answer:

Hence, the correct answer is option A: Rs. 16,000.

 

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