Hi sir
A trader had the following items in his statement of financial position on 31 December 2015 and 2016
2015 2016
Land 2000 2000
Cars. 1000 -
Payables. 500 2000
Receivables. 2000 2000
Cash. 500. -
Closing inv. - 6000
Accrued exp. - 1000
During the period the trader made drawings of 700
What was the trader's profit for the year ended 31 December 2016?
The answer is 2700
I find the opening net assets $4500 but it is 5000 in the solution. Explain please. Thanks in advance
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Accounting equation
8y ago#1The opening net assets (2015) are 2,000 + 1,000 - 500 + 2,000 + 500 = 5,000.
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