Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

If beginning capital was $25,000, ending capital is $37,000, and the owner's withdrawals were $23,000.?

the amount of net income or net loss for the period was:

a. net loss of $35,000

b. net income of $35,000

c. net income of $14,000

d. net loss of $14,000

e. none of the options listed 

Accounting Capital Projects Capital Acquisition
user-image
Question added by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date Posted: 2015/07/16
Upvote (3) Views (60) Followers (20) Answers (17) Report Question
Write an Answer
Register now or log in to answer.
Sam Younes
by Sam Younes , Senior Budget & Financial Analyst , Haulotte BilJax

If the increase in capital is STRICTLY from operations, it would be a net income of $35K.

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Correct answer is B thank you

Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

23K+37K-25K=35K

b. net income of $35,000 -> net profit of $35000, right?

Umer Sharif
by Umer Sharif , Consultant Lead Financial, Functional, Implementation of Infor ERP Syteline ‚ Eccountant & SmartHCM. , Bin Rasheed Technology Pvt Ltd.

35K profit is the right answer............

Michael Lagunday
by Michael Lagunday , Accountant , Dubai Camel Racing Club

The answer is B. net income of $35,000.

Md. Omar Faruq
by Md. Omar Faruq , Manager-Accounts & Finance , The Rani Re-Rolling Mills Limited.

Computation of profit: Opening Capital($.25,000)+Net Profit-Withdraw($23000)=Ending Capital($37000), So, Net profit will be $35000

The correct answer is option-B

Muhammad Iqbal
by Muhammad Iqbal , Manager Accounts , Fazal e haq restaurant and catereing services

Net incom is $35000, because increase in ending capital

Said Shaban
by Said Shaban , Accountant , Tri State Materials Testing

The answer is B

Beg. Balance + Net Income - Withdrawals = Ending Balance

Shahbaz itbar Abbasi

Net income of $35000 is the amount of total period. 

kasim Abdul Halik
by kasim Abdul Halik , Payroll Accountant , MEA Resource Solutions (Cupola Group)

Option c is right answer, Net income14,000

saif ullah rana rajpoot

net income  of35000    of this business             

See More Answers
Write Your Answer
More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.

Get Help