A-LevelAccountingIntroduction to Accounting / Accounting PrinciplesMay/June 2011Paper 1 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
The correct answer is C. This question tests the candidate's understanding of introduction to accounting / accounting principles within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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