Question

A company’s working capital is Rs.20 lakh (Negative balance) in the year 2019. It became Rs.30 lakh (Positive balance) in the year 2020. What is the percentage of change?
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Answer 1

Percentage of change is 250%.

Explanation:

• A company in 2019 made Rs 20 lakhs capital in a negative balance. However, in 2020 they earned a positive balance of Rs 30 lakhs.  

• When comparing both the values we find the difference between them. Using the formula of percentage change i.e. % change = (final value - initial value)/initial value x 100.

• Replacing the values we get 250% of change from the initial value of -20.