Missing figure

mighty18

A business has net assets of £31240 on 31 May 2011. On the 1st June 2010 the net assets of the business were £26450. The owner knows, that he took £12300 of drawings out of the business during the year in cash and £560 of goods for his own use.
What was the profit of the business for the year?

amandagarratt

Hi
Opening capital is the same as opening net assets = £26450
Closing capital is the same as closing net assets = £31240
If drawings were £12300 and £560 (goods) you can put these into the capital account to find the balancing figure:

Opening capital £26450
+ Profit (balancing figure) £17,650
- Drawings £12860 (12300 + 560)
= Closing capital £31240

Hope this makes sense?