If at the end of a financial year capital is Rs. 20,000, drawing during the year is Rs. 10,000, capital at the beginning of the year is Rs. 12,000, additional capital introduced during the year is Rs. 14,000. Then find net profit for the year?

The correct answer is A. Rs. 5,600.

Net profit is calculated by taking the capital at the end of the year, subtracting the capital at the beginning of the year, adding the additional capital introduced during the year, and subtracting the drawings during the year. In this case, we have:

Net profit = 20,000 – 12,000 + 14,000 – 10,000 = 5,600

Option B is incorrect because it is the amount of drawings during the year. Option C is incorrect because it is the amount of additional capital introduced during the year. Option D is incorrect because it is the average capital for the year.