A business has net assets of £296,400 on 31 Jan 2021 and had net assets of £256,250 on 31 Jan 2020. During the year the owner of the business: 1. took goods for his own use which cost £8,000 and had a market value of £12,000; 2. introduced capital of £45,000; and 3. withdrew £35,000 as salary. What was the profit for the year?
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A business has net assets of £296,400 on 31 Jan 2021 and had net assets of £256,250 on 31 Jan 2020. During the year the owner of the business:
1. took goods for his own use which cost £8,000 and had a market value of £12,000;
2. introduced capital of £45,000; and
3. withdrew £35,000 as salary.
What was the profit for the year?
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- he following figures were extracted from the books of E Wallis as at 30 June 2019: what is the capital of the business, using the accounting equation £ Delivery Van 14,000 Inventory 12,560 Trade Payables 21,050 Office furniture 8,642 Trade Receivables 43,800 Bank balance 11,722 5 years business loan 50,000 Accumulated depreciation 7,000 Rent due 1,200 Provision for doubtful debts 1,500 Petty cash 150TA services were formed on May 1, 2020. The following transactions took place during the first month. May 1 Mr. Tarek Ahmed invested $80,000 in the business, as its sole owner.May 2 Hired two employees, who will be paid a salary $1,000 per month.May 3 Paid $20000 in advance for rent of a warehouse.May 4 Purchased furniture & equipment costing $30,000. $10,000 paid in cash and $20,000 payable in next 6 months.May 5 Paid $22,000 for 1-year insurance policy.May 7 Purchase basic office supplies for $500 on account.May 8 $1,500 received in advance for which services to be performed in June.May 10 Revenue earned in cash $20000 and on account $10000.May 12 Payment to creditor for May 7 transactions.May 16 Received from debtors for May 10 transaction.May 22 Withdraw by owner $ 700.May 27 Purchase of pick-up van $ 5000 on account. Instructions:(a) Pass the Journal Entry & Post to ledger.(b) Prepare Trial Balance.Corp. open up a business with an investment of P50,300 on November 1, 2022 from his saving account to a business checking account and made payment for a small space month-rent, P20,000 and merchandise for presentation worth P20,000. During the operating month, the business incurred various expenses, P7,500 of which 25% remains to be paid next month. Mr. Hamon made all sales deposits directly to the bank and paid wages during the month amounting to P55,000 and P15,000, respectively. At the end of the month, a total of P3,250 for the water, electric and phone consumption bills were received but did not immediately pay it. At this point, the balance of business checking account increased to P43,200.How much is the November 30 Owner’s Equity balance if Mr. Hamon was able to withdraw cash during for the purchase of merchandise for trading amounting to P15,000?