ACCA FA · Chapter 3 · Question 2 of 10
A trader's net assets were $38,000 at the start of the year and $51,500 at the end. During the year the trader introduced capital of $6,000 and took drawings of $9,000. What was the profit for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) $16,500
Explanation
Increase in net assets = $51,500 - $38,000 = $13,500. This increase equals capital introduced + profit - drawings, so profit = $13,500 - $6,000 + $9,000 = $16,500. Reversing the treatment of capital introduced and drawings gives $10,500, and adding both gives $28,500.
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