O-LevelAccountingAccounting procedures7707/11 · Oct/Nov 2013 · Q81 Mark

Which journal entry records the transfer of the profit for the year, $10000, to a sole trader's capital account?

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

ADr appropriation $10000 Cr capital $10000

BDr capital $10000 Cr appropriation $10000

CDr capital $10000 Cr income statement $10000

DDr income statement $10000 Cr capital $10000

✓ Correct answer

D: Dr income statement $10000 Cr capital $10000

Oracle Prep sorts past-paper questions by topic, so you can drill Accounting procedures and see which topics are most likely to come up next.

Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2013 Paper 1 Variant 1, question 8.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content