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A trader’s profit for the year may be computed by using which of the following formulae?
A Opening capital + drawings – capital introduced – closing inventory
B Closing capital + drawings – capital introduced – opening capital
C Opening capital – drawings + capital introduced – closing capital
D Opening capital – drawings +capital introduced – closing capitalHello Sir. The answer to this question is C but I chose B… I am rather confused because I thought the equation was: Opening Capital + Capital Introduced + Profit for the year – Drawings = Closing Capital
Assuming that you have copied the question correctly, then the answer is indeed B !!
I don’t know where you found the question, but the correct answer is not C.
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