Hi
Can you please help. I urgently need to submit my assignment. I am stuck over these two questions.
The questions are:
1. The following information relates to a sole trader.
Total of all assets at 1 June £2,300
Total of all liabilities at 1 June 2,500
Net profit earned during June 1,000
Capital introduced during June 5,000
Drawings during June 700
The sole trader's capital at 30 June was: ?
2. Tom set up a business on 1 January. He bought Non-current assets costing £53,000 and Inventory costing £6,600. He had financed these in advance of commencing business with a personal loan of £25,000 from his brother and a business loan from a bank. On 31 December of the same year his net assets totalled £37,200. His net profit for the year was £21,100.
Tom's drawings during the year were:
If you could kindly explain to me how to reach to the answer to these two questions. Thanks
Can you please help. I urgently need to submit my assignment. I am stuck over these two questions.
The questions are:
1. The following information relates to a sole trader.
Total of all assets at 1 June £2,300
Total of all liabilities at 1 June 2,500
Net profit earned during June 1,000
Capital introduced during June 5,000
Drawings during June 700
The sole trader's capital at 30 June was: ?
2. Tom set up a business on 1 January. He bought Non-current assets costing £53,000 and Inventory costing £6,600. He had financed these in advance of commencing business with a personal loan of £25,000 from his brother and a business loan from a bank. On 31 December of the same year his net assets totalled £37,200. His net profit for the year was £21,100.
Tom's drawings during the year were:
If you could kindly explain to me how to reach to the answer to these two questions. Thanks