Question

profit is calculated by using following formula in single entry system
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Answer 1

Explanation:

The following method is used for the calculation of profit or loss under single entry system. Profit for the year 2009 = Closing capital -Opening capital = $200000-$150000 = $50000. ... * Interest on capital: If the interest is provided on capital, it should be deducted from the amount of closing capital.

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