Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

At the beginning of a financial period, the balance on a business owner’s capital account was $85\,000. Over the period, the owner brought a private vehicle valued at $30\,000 into the business. Also, the owner withdrew cash drawings amounting to $15\,000. The business recorded a net loss of $22\,000 for the period. What is the balance on the capital account at the end of the period?

  • A$18\,000
  • B$48\,000
  • C$78\,000
  • D$100\,000

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