Capital accounting requires closing net assets

Steps:

• Identify opening net assets (capital) as $6,250.
• Note drawings of $3,900 reduce capital.
• Recall profit formula: Profit = Closing capital - Opening capital + Drawings.
• Conclude closing capital is missing, preventing calculation.

Why the correct option is correct:

• Not enough information to determine profit or loss, as closing net assets are required per the capital maintenance equation.

Why the others are wrong:

• A, B, C, D all assume unavailable closing net assets, leading to incorrect arithmetic without basis.

Final answer: Not enough information.