Paper 1 May/June 2003 Accounting (9706/12) A Level
At the end of the year, Barack’s draft accounts showed a capital account balance of $4300.
His drawings account included a debit entry of $150 for goods taken for his own use.
Barack realised that this entry had been recorded in error at selling price rather than cost price.
He sells goods with a mark-up of 50%.
What is the correct closing capital account balance?