ACCA FA2 CAPITAL BALANCE 1
A business has cash of $70,000. trade payables of $40,000, a mortgage liability of $30,000, and land of $40,000.
What is the capital balance?
SUGGESTED SOLUTIONS
$ | ||
Land | 40,000 | |
Cash | 70,000 | |
Assets | 110,000 | |
Payables | 40,000 | |
Mortgage | 30,000 | |
Total liabilities | 70,000 | |
Capital (Assets - Total liabilities) | 40,000 |