A-LevelAccountingThe accounting cycle9706/12 · May/June 2011 · Q171 Mark

A new business was established with opening capital of $20 000. At the end of the first year, assets less liabilities were $26 000. The owner withdrew $7000 as drawings during the year and this resulted in a bank overdraft of $5000 at the end of the year. What was the profit during the first year?

A$8000

B$12 000

C$13 000

D$18 000

✓ Correct answer

C: $13 000

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Topic: The accounting cycle, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2011 Paper 1 Variant 2, question 17.

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