Capital of firm in the beginning of a financial year was Rs. 1,00,000. At the end, total assets were Rs. 1,50,000 and total liabilities were Rs. 70,000. If total drawing during the year was Rs. 30,000, what is the gross profit or gross loss?

The correct answer is: A. Rs. 10,000 Profit

To calculate the gross profit, we can use the following formula:

Gross profit = Total assets – Total liabilities – Capital

In this case, we have:

• Total assets = Rs. 1,50,000
• Total liabilities = Rs. 70,000
• Capital = Rs. 1,00,000

Therefore, the gross profit is:

Gross profit = Rs. 1,50,000 – Rs. 70,000 – Rs. 1,00,000 = Rs. 10,000

The other options are incorrect because they do not take into account the total assets and total liabilities of the firm.