Calculate the net profit or loss made during the year.

Use the information below to answer questions

……………………1/7/2005…………30/6/2006

Drawings……………………………….N3 000
Capital……………..25 000……………N42 500
Furniture……………6 500……………N10 200

Additional capital during the year amounts to 300% of the drawings.

A. N15 100 profit
B. N15 100 loss
C. N11 500 profit
D. N11 500 loss

Correct Answer:

Option D – N11 500 loss