ACCA FA2 CAPITAL BALANCE 1

A business has cash of $40,000. trade payables of $70,000, a mortgage liability of $10,000, and land of $60,000.

What is the capital balance?

SUGGESTED SOLUTIONS

	$
Land	60,000
Cash	40,000
Assets		100,000
Payables	70,000
Mortgage	10,000
Total liabilities		80,000
Capital (Assets - Total liabilities)		20,000