In the case of net worth method of single entry system, the net profit is ascertained by
A)preparing a Trading and Profit & Loss Account
B)comparing the capital in the beginning and at the end of the accounting period
C)adopting another method
D)none of the above

Question

Quizplus · Accepted Answer

The net profit in the net worth method of single entry system is ascertained by comparing the capital at the beginning of the accounting period with the capital at the end of the period, after adjusting for drawings and additional capital introduced, if any.

In the Case of Net Worth Method of Single Entry