ACCA FA2 CAPITAL BALANCE 1

A business has cash of $10,000. trade payables of $60,000, a mortgage liability of $10,000, and land of $80,000.

What is the capital balance?

SUGGESTED SOLUTIONS

	$
Land	80,000
Cash	10,000
Assets		90,000
Payables	60,000
Mortgage	10,000
Total liabilities		70,000
Capital (Assets - Total liabilities)		20,000