Accounting 0452 · IGCSE · Incomplete records

Incomplete records — practice question

On 1 January 2022, Ashwin began operating a business as a taxi driver. The taxi was bought for $5000 and he deposited $100 into a business bank account. He kept no accounting records. By 31 December 2022, the business bank account contained $1750, the taxi had a value of $4000 and he still owed the garage $50 for repairs. Over the year, he withdrew $1600 from the business bank account as drawings. What was the profit for the year?

  • A$1650
  • B$2200
  • C$2250
  • D$3250

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