Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

Brian ran a service business that kept no inventory. On 1 April, his current assets and current liabilities were: trade receivables $10000$ trade payables $6100$ bank overdraft $1900$ On that date, he offset a sales ledger balance of $600$ against a purchases ledger balance and then made a provision for doubtful debts of $5\%$. What is the value of his working capital after these adjustments?

  • A$1470$
  • B$1500$
  • C$1530$
  • D$1900$

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