Accounting 0452 · IGCSE · Incomplete records

Incomplete records — practice question

Farred did not maintain a complete set of accounting records. He bought goods on credit, and every sale was for cash. Farred compared his assets and liabilities at the beginning and at the end of his financial year. He noted these changes at the end of the financial year: - non-current assets rose by $11\,000$ - inventory fell by $6100$ - trade payables increased by $3000$ The bank balance moved from a debit balance of $4200$ to an overdraft of $7100$. What was the change in Farred’s capital?

  • Aa decrease of $3400$
  • Ba decrease of $9400$
  • Can increase of $4800$
  • Dan increase of $10\,800$

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