Accounting 0452 · IGCSE · Sole traders

Sole traders — practice question

By the close of her first year of trading, Zoe had $6500 in her business bank account. She then added $5000 of her own cash to the business bank account. From this sum, she used $2000 to pay back a business loan. What impact would these transactions have on her assets, capital and liabilities?

  • Aassets $-3000$, capital $-5000$, liabilities $+2000$
  • Bassets $+3000$, capital $+5000$, liabilities $-2000$
  • Cassets $+3000$, capital $+3000$, liabilities unchanged
  • Dassets $+5000$, capital $+5000$, liabilities unchanged

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