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.
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