PRC-1 · Chapter 10 · Question 71 of 100
A sole trader introduces additional cash of Rs. 50,000 into the business during the year. Where is this recorded in the financial statements?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Added to Capital in the Equity section of the Statement of Financial Position.
Explanation
Additional capital introduced by the owner increases the owner's equity and is added to the opening capital balance in the Statement of Financial Position.
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