Net Assets as on 1st Jan 2013 Cash = 10,000 Owed from Customers = 2,000 Equipment = 8,000 So Total Assets = 20,000; But in your answer key, Total Assets = 18,000 Only & Hence you showed Increase in net assets = 1000 But actually it’s a decrease in net assets = 1000 And by considering the owner’s drawings the final loss = 200, which is not in the options