Question

Profit is calculated by using following formula in single entry system :
(1) Opening capital + Drawings - Additional capital - Closing capital
(2) Closing capital + Drawings + Additional capital - Opening capital
(3) Closing capital + Drawings - Additional capital - Opening capital
(4) Opening capital - Drawings + Additional capital - Closing capital​

Answer 1

Answer:

(1) Opening capital + Drawings - Additional capital - Closing capital

(2) Closing capital + Drawings + Additional capital - Opening capital

(3) Closing capital + Drawings - Additional capital - Opening capital

(4) Opening capital - Drawings + Additional capital - Closing capital

Answer 2

Answer:

3 ) closing capital + drawings - additional capital- opening capital