Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A business possessed the following assets and liabilities at the beginning of the year. a motor car worth $2500$ inventory that cost $4000$ and had a sales value of $5800$ a bank overdraft amounting to $500$ a loan of $1000$ made to a friend from the business bank account What was the capital account balance at the beginning of the year?

  • A$5000$
  • B$7000$
  • C$8000$
  • D$8800$

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