Question

The accounting equation at the start of the month was:Assets N14,000 less liabilities N6,500.During the following month, the business purchased a non-current asset for N6,000, payingby cheque, a profit of N9,000 was made, and payables of N7,500 were paid by cheque.What would the balance on capital be at the end of month?

Answer 1

The balance on capital at the end of the month is N9,000.00.