Accounting 0452 · IGCSE · Sole traders

Sole traders — practice question

The owner of a sole trader business settled the business overdraft with his own personal money. In what way was the statement of financial position affected?

  • Aliabilities: no effect; capital: increase; assets: increase
  • Bliabilities: decrease; capital: increase; assets: increase
  • Cliabilities: decrease; capital: increase; assets: no effect
  • Dliabilities: decrease; capital: no effect; assets: increase

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