- This topic has 5 replies, 2 voices, and was last updated 10 years ago by
.
Viewing 6 posts - 1 through 6 (of 6 total)
-
Posts
-
Hi Sir,
The profit made by a business in 20×7 was $35400.The proprietor inject new capital of $10200 during the year and withdrew a monthly salary of $500If net assest at the end of 20×7 were $95100 ,what was the propritor capital at the beginning of the year?
A.$50000
B.$55500
C.$63900
D.$134700Y the answer is B and not A?
Using the accounting equation:
Closing net assets – opening net assets = profit + capital introduced – drawings
Therefore, 95100 – opening net assets = 35400 + 10200 – 6000 = 39600
So opening net assets (which equals opening capital) = 95100 – 39600 = 55500Yes – there are 12 months in a year and so 500 a month is 6000 in a year
Viewing 6 posts - 1 through 6 (of 6 total)
- You must be logged in to reply to this topic.