- 1 Marks
Question
A business proprietor failed to maintain proper records, but you managed to ascertain that his opening capital, closing capital, and drawings during the year were N225,000, N260,000, and N10,000 respectively. Determine the profit for the period.
A. N25,000
B. N45,000
C. N55,000
D. N65,000
E. N75,000
Answer
B
Explanation:
Option B is correct because profit is calculated as:
Profit = Closing Capital + Drawings – Opening Capital
(260,000 + 10,000 – 225,000 = 45,000).
- Tags: Drawings, Opening and Closing Capital, Profit Calculation
- Level: Level 1
- Topic: Accounting from Incomplete Records
- Series: NOV 2022
- Uploader: Theophilus