A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2010 · Q161 Mark
X started a business 3 years ago and now has a capital of $175 000. Over that period his profits have been $73 000 and his drawings $52 000. In year 2 he introduced cash of $35 000 and in year 3 he took out of the business, for his own use, a non current (fixed) asset with a net book value of $4000. How much capital did he start the business with?
A$67 000
B$115 000
C$123 000
D$158 000
✓ Correct answer
C: $123 000
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