Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A sole trader’s capital account included three postings, as well as the opening balance and the closing balance. What did those postings show?

  • Adebit side: capital introduced; credit side: drawings, loss for the year
  • Bdebit side: capital introduced, drawings; credit side: profit for the year
  • Cdebit side: drawings, loss for the year; credit side: capital introduced
  • Ddebit side: profit for the year; credit side: capital introduced, drawings

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