ACCA FA2 CAPITAL BALANCE 2

At 1 September 20X1 the balance on Hai's capital amount was $50,000. In the year to 31 August 20X2, he invested an additional amount of $40,000 of personal funds and took a loan of $20,000 for the business. The statement of profit and loss for the year to 31 August 20X2 report a profit of $90,000 and Hai's drawings during the year was $30,000.

What is Hai's closing capital balance at 31 August 20X2?

SUGGESTED SOLUTIONS

$
Opening capital balance50,000
add additional capital 40,000
Profit for the year 90,000
Less Drawings (30,000)
Closing capital balance 150,000

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