Profit Calculation via Capital Change Steps:

• Opening capital = Start assets - Start liabilities = 100,000 - 35,000 = 65,000
• Closing capital = End assets - End liabilities = 135,000 - 40,000 = 95,000
• Net capital increase = Closing capital - Opening capital = 95,000 - 65,000 = 30,000
• Profit = Net capital increase + Drawings = 30,000 + 18,000 = 48,000

Why D is correct:

• D equals profit from the formula Profit = (Closing Capital - Opening Capital) + Drawings, reflecting net worth increase adjusted for owner withdrawals.

Why the others are wrong:

• A: Understates by ignoring capital growth and drawings.
• B: Captures only net capital increase, omitting drawings addition.
• C: Overstates by misapplying asset or liability changes without drawings.

Final answer: D