Which of the following summarised balance sheets (statement of financial position) is correct?
Select ONE answer:
- Business 1
- Business 2
- Business 3
- Business 4
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple choice question is suitable for Accounting KS5 classes.
The answer is 2
- In accordance with the accounting question, Capital = Assets – Liabilities. The Balance Sheet of Business 2 is the only one where the figure for Capital equals the difference between the total of the assets and the total of the liabilities.
- £2,000 = (£9,456 + £2,398) – (£8,354 + £1,500)
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