Practice - Calculation of Profit or Loss from Incomplete Records
Practice Questions
Test your understanding with targeted questions
What is the formula for calculating profit or loss using the Statement of Affairs method?
💡 Hint: Think about how each component impacts the overall capital.
If the closing capital is ₹70,000 and the opening capital is ₹60,000, what is the profit if no withdrawals or additional investments occurred?
💡 Hint: Subtraction will help you find the answer.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What method is primarily used to calculate profit or loss in incomplete records?
💡 Hint: Think about how businesses summarize their assets.
True or False: Withdrawals increase the profit amount.
💡 Hint: Consider the effect of taking money out of the business.
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Challenge Problems
Push your limits with advanced challenges
A restaurant has an opening capital of ₹200,000, closing capital of ₹250,000, an additional investment of ₹50,000, and a withdrawal of ₹20,000. Calculate the profit or loss.
💡 Hint: Use the formula by sequentially substituting values.
If a business has closing capital of ₹80,000, has not recorded ₹3,000 of unpaid wages, and has an opening capital of ₹70,000 without additional investments or withdrawals, calculate the true profit.
💡 Hint: Consider the impact of unpaid wages on profits.
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