Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

Lu had these capital account balances. End of year 1 $45\,700 End of year 2 $63\,400 The following occurred in year 2: 1 cash drawings amounted to $33\,000 2 a personal motor vehicle was brought into the business at a value of $24\,500. The expenses for the year include rent paid of $10\,000, and 40% of this was for Lu’s personal use. What profit did he make in year 2?

  • A$5\,200
  • B$13\,200
  • C$22\,200
  • D$30\,200

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