Question

The balance sheet of Peken Enterprises as at 31st March , 2017 showed an initial capital of sh 85,000. As at 31st March 2018, the following information about the business was provided.

1. Additional investment in the business was sh 30,000
2. Profit made during the trading period was sh 60,000
3. The proprietor made monthly drawings of sh 3,000 from 1st April 2017 to 31st December,2017
   Determine the final capital of Peken Entreprises.

Answer 1

Final capital= Opening capital+profit+Additional investment-drawings
=85,000+30,000+60,000 - (3,000x9)
= 175,000 - 27,000
=148,000