ACCA FA2 CAPITAL BALANCE 1
A business has cash of $20,000. trade payables of $50,000, a mortgage liability of $10,000, and land of $50,000.
What is the capital balance?
SUGGESTED SOLUTIONS
$ | ||
Land | 50,000 | |
Cash | 20,000 | |
Assets | 70,000 | |
Payables | 50,000 | |
Mortgage | 10,000 | |
Total liabilities | 60,000 | |
Capital (Assets - Total liabilities) | 10,000 |