Accounting 0452 · IGCSE · Sole traders

Sole traders — practice question

Samir runs a shop. To set his selling price, he increases the cost of his stock by 50%. He took stock for personal use costing $100 but did not pay for it. How ought this to be recorded in the accounts?

  • Adebit: drawings $100; credit: purchases $100
  • Bdebit: drawings $150; credit: purchases $150
  • Cdebit: trade receivables $100; credit: sales $100
  • Ddebit: trade receivables $150; credit: sales $150

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