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SSC Financial and Cost Accounting P-1 QUESTION #9661
Question 1
Under Single Entry System, an increase in Machinery by Rs. 14,000, an increase in Stocks by Rs. 6,000, a decrease in Debtors by Rs. 2,000, a decrease in Cash by Rs. 1,000, an increase in Creditors by Rs. 1,500, and a decrease in Accrued expenses by Rs. 300 — what is the net change in Owner's Equity before adjusting for drawings and fresh capital?
  • Rs. 15,800✔️
  • Rs. 17,200
  • Rs. 14,200
  • Rs. 20,800
Correct Answer Explanation
Change in Owner's Equity = Net change in Assets – Net change in Liabilities. Asset changes: +14,000 +6,000 –2,000 –1,000 = +17,000. Liability changes: +1,500 –300 = +1,200. Net change in equity = 17,000 – 1,200 = Rs. 15,800.