[SHAMSHEER]

Chapter 2, Question 7

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

[Author]

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