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

Preparation of financial statements — practice question

At the close of a financial period, a business has the following balances. Non-current assets: $102\,000$ Trade receivables: $39\,000$ Trade payables: $27\,000$ Profit for the period: $65\,000$ Drawings: $32\,000$ Long-term loan: $50\,000$ What closing balance will appear on the owner’s capital account at the end of the financial period?

  • A$32\,000$
  • B$64\,000$
  • C$97\,000$
  • D$141\,000$

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