Given:

Drawings - #3,500

Net loss - #2,500

Capital 1/1/2007 - #35,000

Additional capital - #10,000

The adjusted capital as at 31/1/2007 is

  • A #35,000
  • B #39,000
  • C #45,000
  • D #46,000
jamb 2013accounting

The correct answer is B. #39,000

Adjusted capital=

capital + additional capital - net loss - drawings

35,000 +10,000 -3500 -2500 = 39,000

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