ACCA FA2 CAPITAL BALANCE 1

A business has cash of $50,000. trade payables of $30,000, a mortgage liability of $10,000, and land of $40,000.

What is the capital balance?

SUGGESTED SOLUTIONS

	$
Land	40,000
Cash	50,000
Assets		90,000
Payables	30,000
Mortgage	10,000
Total liabilities		40,000
Capital (Assets - Total liabilities)		50,000