Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

If Share Capital is Rs.6,00,000 at the end of the year 31st March 2021 and a positive percentage change shown 40% by Comparative Balance Sheet on 31st March 2022. What was the absolute change in the Share Capital on 31st March 2022?

Options:

₹3,36,000

₹6,00,000

₹2.40,000

₹8,40,000

Correct Answer:

₹2.40,000

Explanation:

The correct answer is option 3- ₹2,40,000

Increase in share capital = 6,00,000 x 40/100
                                      = ₹2,40,000

Share capital in 2022 = 6,00,000+ 2,40,000
                                  = ₹8,40,000

Absolute change = 8,40,000-6,00,000
                           = ₹2,40,000