Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

The statement of financial position listed these balances on 31 December 2015: capital accounts X $20000$, Y $10000$; current accounts X $1000$ debit and Y $2500$ credit. Net assets on 1 January 2015 were $14000$. During the year ended 31 December 2015, property was revalued upwards by $12000$. There were no drawings in the year. Calculate the profit for the year ended 31 December 2015.

  • A$2500
  • B$5500
  • C$14500
  • D$17500

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