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Question 90

Which of the following transactions increases the capital of the owner?

  1. AWithdrawal of cash for personal use
  2. BNet Profit earned during the year
  3. CPayment to creditors
  4. DPurchase of furniture
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Correct answer: (B) Net Profit earned during the year

Explanation

Net profit earned is added to the owner's capital. Drawings reduce capital, while paying creditors or buying furniture only changes assets and liabilities.

From DSSSB TGT Computer Science Practice Set 3

This is question 90 of DSSSB TGT Computer Science Practice Set 3. See all questions of this paper with answers, or attempt the paper as a timed online test to get your score and all-India rank.