Vidyalelo
Commerce · Q53

Accounting

Graduate and Post Graduate · Commerce · question 53

Q53

Capital of a business decreases if there is an increase in

A.
Drawings
Answer
B.
Income
C.
Gains
D.
Fresh capital

Answer: Option A

Solution

Answer: Option A
Solution:
Capital of a business decreases if there is an increase in Drawings. Drawing is always deducted from capital.