The correct answer is A. Increase of Rs. 10,000.
Working capital is the difference between current assets and current liabilities. It is a measure of a company’s liquidity and ability to meet its short-term obligations.
A positive working capital indicates that a company has more current assets than current liabilities. This is a good sign, as it means that the company has the resources to meet its short-term obligations.
A negative working capital indicates that a company has more current liabilities than current assets. This is a bad sign, as it means that the company may not be able to meet its short-term obligations.
In this case, the working capital of the previous year is Rs. -50,000 and the working capital of the current year is Rs. 60,000. This means that the working capital has increased by Rs. 10,000.
The amount of change in the working capital is calculated as follows:
Change in working capital = Working capital of current year – Working capital of previous year
= Rs. 60,000 – Rs. -50,000
= Rs. 10,000
Therefore, the amount of change in the working capital is Rs. 10,000. This is an increase, as the working capital has gone from a negative value to a positive value.