In single entry system profit is calculated as follows:
A)Opening Capital + Drawing + Fresh Capital- Ending capital
B)Capital at the end - Drawing - Fresh capital - Opening capital
C)Capital at the end + Drawing - Fresh capital -Opening capital
D)None of the above

Question

Quizplus · Accepted Answer

The correct formula to calculate profit in a single entry system is: Capital at the end + Drawings - Fresh capital - Opening capital. This formula adjusts the opening and closing capital with any drawings and fresh capital introduced to find the profit.

In Single Entry System Profit Is Calculated as Follows