Funny Traders, had the following assets and liabilities as at 1^st January, 2015 ...

      

Funny Traders, had the following assets and liabilities as at 1^st January, 2015

Sh
Furniture + equipment........................... 350,000
Debtors .........................................45,000
Cash............................................ 7,000
Creditor......................................... 48,000

For the year ended 31st December, 2015 there was:
(i) Additional capital introduced amounting to sh34,000.
(ii) Drawings made during the year amounting to sh20,000.
(iii) Net profit amounting to sh34,000.

Determine the capital of the business as at 31^st December, 2015.

  

Answers

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350,000 + 45,000 + 8000 – 48,000 = 402,000
402,000 – 48,000 = 354,000
Capital as at 31^st December, 2015 =
= 354,000 + 34,000 + 34,000– 20,000 = 402,000

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sharon kalunda answered the question on September 4, 2019 at 12:09

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