If opening capital is Rs 1,00,000, closing capital is Rs 1,50,000, and drawings are Rs 20,000, what is the profit for the year assuming no additional capital? MCQ with Answer and Explanation

If opening capital is Rs 1,00,000, closing capital is Rs 1,50,000, and drawings are Rs 20,000, what is the profit for the year assuming no additional capital?
A. Rs 50,000
B. Rs 70,000
C. Rs 1,70,000
D. Rs 30,000
Answer: Option B
Solution (By JKSSB Mock Tests)
Profit = Closing Capital + Drawings - Opening Capital. Profit = 1,50,000 + 20,000 - 1,00,000 = Rs 70,000.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
What is the maximum rate of CGST prescribed under the CGST Act?
A. 14%
B. 20%
C. 18%
D. 28%

Correct Answer: Option B


Explanation:
The maximum rate of CGST is capped at 20% by the Act, making the combined maximum GST (CGST + SGST) 40%.

Question #2
The 'Statement of Changes in Equity' shows:
A. Changes in owners' equity during the period
B. Changes in assets
C. Changes in liabilities
D. Cash flows

Correct Answer: Option A


Explanation:
It reconciles opening and closing equity, showing profit/loss, other comprehensive income, transactions with owners.

Question #3
Which constitutional body recommends the distribution of net proceeds of taxes between the Union and the States?
A. Public Accounts Committee
B. Finance Commission
C. GST Council
D. NITI Aayog

Correct Answer: Option B


Explanation:
Constituted under Article 280, the Finance Commission makes recommendations regarding the sharing of tax revenues.