Profit = Closing capital + Drawings - Additional capital - Opening capital = 80,000 + 3,000 - 4,000 - 70,000 = Rs. 9,000. Under the single entry / net-worth method, since no proper books are kept, profit is measured by the change in the owner's capital, after correcting for drawings (which reduce capital but are not a loss) and additional capital (which increases capital but is not a profit). Statement of Profit | Particulars | Amount (Rs.) | | --- | --- | | Capital at the end (31-03-2014) | 80,000 | | Add: Drawings during the year | 3,000 | | | 83,000 | | Less: Additional capital introduced | 4,000 | | Adjusted closing capital | 79,000 | | Less: Capital at the beginning (01-04-2013) | 70,000 | | Profit for the year | 9,000 | …