EXERCISE

 Example

Amy is a sole trader and had assets of $569,400 and liabilities of $412,840 on 1 January 20X8. During the year ended 31 December 20X8 she paid $65,000 capital into the business and she drawing of $800 per month.

At 31 December 20X8, Amy had assets of $614,130 and liabilities of $369,770.

Required:

A. What is Amy’s opening capital on 1 January 20X8?

B. What is Amy’s closing capital on 31 December 20X8?

C. What is Amy’s drawing for the year ended 31 December 20X8?

D. What is Amy’s profit for the year ended 31 December 20X8?