Question

If opening capital is 70,000 and closing capital is 90,000, what is the amount of profit or loss?

Profit 20,000

Loss 20,000

Loss 70,000

Profit 90,000

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Answer 1

Answer:

Profit 20000

Explanation:

Profit/loss = Closing capital + drawings & interest on drawings - opening capital - additional capital & interest on capital.

Profit /loss = 90,000 - 70000

Profit = 20000