CIMA BA3 · Chapter 3 · Question 2 of 10
A sole trader's net assets were $40,000 at the start of the year and $52,500 at the end. During the year the owner withdrew $9,000 and introduced additional capital of $6,000. What was the profit for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) $15,500
Explanation
Closing net assets = Opening net assets + Capital introduced + Profit - Drawings. So Profit = Closing - Opening + Drawings - Capital introduced = $52,500 - $40,000 + $9,000 - $6,000 = $15,500.
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