Capital change formula Steps:

• Change in capital = Capital introduced + Profit - Drawings
• Profit = $7000; assume change = +$2000 (fits options; "decreased" likely error as none yield negative)
• $2000 = Introduced +$7000 - Drawings
• Drawings - Introduced = $7000 -$2000 = $5000
• Test options: A gives $6000 -$1000 = $5000

Why A is correct:

• Matches formula: net drawings exactly offset profit to leave $2000 increase ($1000 + $7000 -$6000 = $2000)

Why the others are wrong:

• B: Net drawings $6000 yields +$1000 change
• C: Net drawings $6800 yields +$200 change
• D: Net drawings $2800 yields +$4200 change

Final answer: A