bill sets up his own computer consultancy from home.he buys a laptop for $2000 and puts $1000 into a business bank account.During the first month he invoices a client for $1500 and pays $600 to a freelance programmer.The client has not yet paid
What is bill's capital balance at the end of month?
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6y ago#1Please do not type out test questions and expect to be provided with a full answer. You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.
Using the accounting equation, the capital at the end of the month is 2,000 + 1,000 + (1,500 - 600) = 3,900.
The accounting equation is explained in detail in my free lectures.
I don't get the part where u adjust the 1500 off invoices? Plss explain.
5y ago#3The sales ae $1,500 and the costs are $600, therefore the profit is 1,500 - 600 = $900.
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