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SSC Financial and Cost Accounting P-1 QUESTION #9636
Question 1
In a Single Entry system, a trader's Opening Capital was Rs. 100,000 and Closing Capital Rs. 145,000. During the year drawings were Rs. 30,000 and fresh capital introduced was Rs. 15,000. What is the Net Profit for the year?
  • Rs. 60,000✔️
  • Rs. 45,000
  • Rs. 75,000
  • Rs. 30,000
Correct Answer Explanation
Net Profit = Closing Capital + Drawings – Opening Capital – Fresh Capital = 145,000 + 30,000 – 100,000 – 15,000 = Rs. 60,000. The Statement of Profit or Loss reverses the owner's equity equation to isolate profit.