Day: December 4, 2021

A business does not keep proper accounting records.

The following information is available at the start of the year.

1. a motor car valued at £2,500
2. stocks which cost £4,000 with a sale value of £6,000
3. bank overdraft of £500
4. a loan to a friend from the business bank account £1,000

What is the Capital account balance at the start of the year?

Select ONE answer:

1. £5,000
2. £7,000
3. £8.000
4. £9,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct ==> £2,500 + £4,000 – £500 + £1,0000
3. Not correct
4. Not correct

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