Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

X launched a business 3 years ago and currently has capital of $\$175\,000$. During that time, profits totalled $\$73\,000$ and drawings came to $\$52\,000$. In year 2 he added cash of $\$35\,000$, and in year 3 he withdrew, for his own use, a non-current asset with a net book value of $\$4\,000$. What amount of capital did he have when the business began?

  • A$\$67\,000$
  • B$\$115\,000$
  • C$\$123\,000$
  • D$\$158\,000$

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI