Question 17 of 30
Q.Net profit of the business increases the ______.
(a) Debts
(b) Drawings
(c) Capital
(d) Receivables
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2023MCQ· 1mImportance★★★★★
57% · 17/30 Questions
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Start your 14-day free trial to unlock the full solution →Net profit increases the owner's capital, so the answer is (c).
At the end of the accounting period, the net profit found from the profit and loss account is transferred to the owner's capital account. Because the profit belongs to the proprietor, adding it increases the capital.
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