Capital at start was 250 000 while capital at t... - JAMB Accounting 2019 Question
Capital at start was ₦250,000, while capital at the end of the year was ₦400,000. Drawings during the year amounted to ₦15,000. What is the profit?
A
₦165,000
B
₦635,000
C
₦600,000
D
₦156,000
correct option: a
Let:
OC = Opening Capital
AC = Additional capital
NP = Net profit
D = Drawing
CC = Closing Capital
then,
AC + DC + NP - D = CC
250,000 + P - 15,000 = 400,000
P = 400,000 - 250,000 + 15,000
P = ₦165,000
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