O-LevelAccountingThe fundamentals of accounting7707/11 · May/June 2020 · Q201 Mark
On 31 December 2019 John had net assets of $2000 and capital of $2000. On 1 January 2020, goods costing $140 were sold on credit for $220. What was the effect of this transaction on the statement of financial position? net assets capital $ $ A 80 decrease 80 decrease B 80 increase 80 increase C 220 decrease 220 decrease D 220 increase 220 increase
A80 decrease 80 decrease
B80 increase 80 increase
C220 decrease 220 decrease
D220 increase 220 increase
✓ Correct answer
B: 80 increase 80 increase
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