The net assets of Alex’s business (who is a sole trader) decreased by £11,025 over the year to 31 October 2023.
During that year Alex had paid in additional capital of £14,000, drawn £875 in cash each month and on one occasion, taken goods costing £2,625 for his own use.
The loss made by the business for the year ended 31 October 2023 was?
Select ONE answer:
- £10,150
- £11,900
- £21,525
- £25,025
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
- Notcorrect
- Correct – Decrease in net assets £11,025 + Capital introduced £14,000 – Drawings (875 ×12) £10,500 = Loss £11,900
- Not correct
- Not correct
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