ACCA FA2 CAPITAL BALANCE 1
A business has cash of $60,000. trade payables of $30,000, a mortgage liability of $20,000, and land of $30,000.
What is the capital balance?
SUGGESTED SOLUTIONS
$ | ||
Land | 30,000 | |
Cash | 60,000 | |
Assets | 90,000 | |
Payables | 30,000 | |
Mortgage | 20,000 | |
Total liabilities | 50,000 | |
Capital (Assets - Total liabilities) | 40,000 |