A-LevelAccountingFinancial Statements of Sole TradersOct/Nov 2019Paper 1 Q101 Mark

A business had the following assets and liabilities at the start of the year. a motor car valued at $2500 inventory which cost $4000 with a sales value of $5800 bank overdraft of $500 a loan to a friend from the business bank account of $1000 What was the capital account balance at the start of the year?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is B: $7000.

Q: What topic does this question test?

This question tests Financial Statements of Sole Traders in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$5000

B$7000

C$8000

D$8800

✓ Correct Answer

The correct answer is B: $7000

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Financial Statements of Sole Traders in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2019 examination, Paper 1 Variant 2.

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