[amp_mcq option1=”Rs. 23,000″ option2=”Rs. 21,000″ option3=”Rs. 19,000″ option4=”Rs. 11,000″ correct=”option3″]<\/p>\n
The correct answer is C. Rs. 19,000.<\/p>\n
Owners equity balance at the end is Rs. 21,000. During the year additional capital introduced by owner is Rs. 6,000 and drawings made is Rs. 4,000. If net profit for the year is Rs. 8,000. Then what is the balance of owner is equity in the beginning?<\/p>\n
To solve this, we can use the following equation:<\/p>\n
Owners equity = Owners equity at the beginning + Net profit – Drawings + Additional capital introduced<\/p>\n
Plugging in the given values, we get:<\/p>\n
Owners equity = 21,000 = Owners equity at the beginning + 8,000 – 4,000 + 6,000<\/p>\n
Solving for Owners equity at the beginning, we get:<\/p>\n
Owners equity at the beginning = 21,000 – 8,000 + 4,000 – 6,000 = 19,000<\/p>\n
Therefore, the balance of owner is equity in the beginning is Rs. 19,000.<\/p>\n
Option A is incorrect because it is the owners equity balance at the end.<\/p>\n
Option B is incorrect because it is the owners equity balance at the end.<\/p>\n
Option D is incorrect because it is the net profit for the year.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Rs. 23,000″ option2=”Rs. 21,000″ option3=”Rs. 19,000″ option4=”Rs. 11,000″ correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-47365","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n