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The following transaction relates to Max’s business :
1 May purchase of goods for resale on credit -$300
2 May Max injects long terms capital into the business -$1400
3 May payment of rent made-$750
5 May Max withdraws cash from the business -$ 400
7 May sale made on credit -$1200
(Goods originally cost $600)At the start of the week, the assets of the business were $15,700 and liabilities amounted to $11,200.
At the end of the week, what is the amount of Max’s capital?
A $5350
B $1400
C $850
D $1000I am sorry but we are not here to simply provide answers to test questions.
You must have an answer in the same book in which you found the question, and so you must ask which bit of the answer you are not clear about.
Have you watched our free lectures on the accounting equation and on double entry bookkeeping, because if you have then it should be clear.
Our lectures are a complete course for Paper F3 and cover everything needed to be able to pass the exam well.
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