ACCA FA2 CAPITAL BALANCE 2
At 1 September 20X1 the balance on Hai's capital amount was $70,000. In the year to 31 August 20X2, he invested an additional amount of $10,000 of personal funds and took a loan of $60,000 for the business. The statement of profit and loss for the year to 31 August 20X2 report a profit of $80,000 and Hai's drawings during the year was $40,000.
What is Hai's closing capital balance at 31 August 20X2?
SUGGESTED SOLUTIONS
| $ | |
| Opening capital balance | 70,000 |
| add additional capital | 10,000 |
| Profit for the year | 80,000 |
| Less Drawings | (40,000) |
| Closing capital balance | 120,000 |