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

Preparation of financial statements — practice question

The information below is given for the end of a sole trader’s financial year. Non-current assets: $41000 Trade receivables: $12500 Trade payables: $4500 Bank: $3900 credit Long-term bank loan (due $2025$): $6000 Drawings: $2500 Profit for the year: $4200 What was the closing balance on the capital account?

  • A$37400
  • B$39100
  • C$40800
  • D$46900

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