Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

By the end of the year, Barack’s draft accounts indicated a capital account balance of $4300. His drawings account contained a debit entry of $150 for goods taken for his own use. Barack found that this item had been entered incorrectly at selling price instead of cost price. He sells goods with a mark-up of $50\%$. What should the corrected closing capital account balance be?

  • A$4225
  • B$4250
  • C$4300
  • D$4350

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