Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A sole trader set up a business on 1 January with capital of $\$50\,000$. As the year progressed, she brought into the business her own private vehicle. It had originally cost $\$22\,000$, but when it was introduced into the business its value was $\$16\,000$. Drawings made throughout the year were $\$20\,000$. By 31 December, the closing balance on the capital account stood at $\$105\,000$. Calculate the profit for the year.

  • A$\$39\,000$
  • B$\$53\,000$
  • C$\$59\,000$
  • D$\$75\,000$

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