ACCA FA2 CAPITAL BALANCE 1

A business has cash of $30,000. trade payables of $20,000, a mortgage liability of $10,000, and land of $70,000.

What is the capital balance?

SUGGESTED SOLUTIONS

	$
Land	70,000
Cash	30,000
Assets		100,000
Payables	20,000
Mortgage	10,000
Total liabilities		30,000
Capital (Assets - Total liabilities)		70,000