At 1 September 20X1 the balance on capital account of Hai (a sole trader) was R31 754. In the year to 31 August 20X2 he invested an additional amount of R40 000 of personal funds and took a loan of R80 000 for the business. The income statement for the year to 31 August 20X2 reported a profit of R48 634 and Hai’s drawings during the year were R28 500. What is Hai’s closing capital balance at 31 August 20X2?

At 1 September 20X1 the balance on capital account of Hai (a sole trader) was R31 754. In the year to 31 August 20X2 he invested an additional amount of R40 000 of personal funds and took a loan of R80 000 for the business. The income statement for the year to 31 August 20X2 reported a profit of R48 634 and Hai’s drawings during the year were R28 500. What is Hai’s closing capital balance at 31 August 20X2?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions

Section: Chapter Questions

Problem 26CE

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