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?
1 )
$4225
2 )
$4250
$4300
4 )
$4350
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