Calculate capital
annefoth
Registered Posts: 39
Hi
At college studying level 2 from February now college closed so looking through question bank
Can someone save my sanity and explain this
Mark Waugh starts in business. Before any sales he has purchased fixtures £12000 car £30000 and inventories £21000
Paid in full for fixtures and car but owes £8400 for some of the inventory
His brother has lent him £18000
Mark, after the above, has £16800 in the business bank account and £600 cash in hand
Calculate Marks capital
My questions
How has he funded the purchases and which account would be credited
Where has the £16800 and £600 appeared from
Is it from sales and is the £600 cash in hand a cash receipt
Or is this just a simple assets minus liabilities equals capital
I calculated £63000 minus £26400 equals £36600
But I am not sure of anything anymore
At college studying level 2 from February now college closed so looking through question bank
Can someone save my sanity and explain this
Mark Waugh starts in business. Before any sales he has purchased fixtures £12000 car £30000 and inventories £21000
Paid in full for fixtures and car but owes £8400 for some of the inventory
His brother has lent him £18000
Mark, after the above, has £16800 in the business bank account and £600 cash in hand
Calculate Marks capital
My questions
How has he funded the purchases and which account would be credited
Where has the £16800 and £600 appeared from
Is it from sales and is the £600 cash in hand a cash receipt
Or is this just a simple assets minus liabilities equals capital
I calculated £63000 minus £26400 equals £36600
But I am not sure of anything anymore
0
Comments
-
Update
I’ve now calculated assets as £80400 minus liabilities of £26400 equals £54000 capital
Still not sure if the £600 is an asset or a drawing0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership