ACCA FA · Chapter 3 · Question 1 of 10
A sole trader's capital at the start of the year was $45,000. During the year she introduced a further $5,000, made a profit of $12,600 and withdrew $8,200 for personal use. What was her capital at the end of the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) $54,400
Explanation
Closing capital = opening capital + capital introduced + profit - drawings. $45,000 + $5,000 + $12,600 - $8,200 = $54,400. Adding drawings gives $70,800, omitting the capital introduced gives $49,400, and ignoring drawings gives $62,600.
More Double entry bookkeeping and the accounting equation MCQs
- Q3What is the double entry to record the purchase of goods for resale on credit?
- Q4The owner of a shop takes goods costing $350 from inventory for personal use. What is the double entry to record this?
- Q5In which book of prime entry would a credit note issued to a credit customer for goods returned first be recorded?
- Q6A business operates a petty cash imprest system with a float of $350. During the month, petty cash vouchers totalling $212 were paid out…
- Q7A customer's account in the receivables ledger had an opening debit balance of $1,200. During the month, credit sales of $4,500 were made…