Telfer Smith's statement of financial position at 31 December shows the following balances: There were no long-term liabilities.
What is the total of Telfer Smith's capital at 31 December?
A)£64 500
B)£120 500
C)£84 500
D)£140 500

Question

Telfer Smith's statement of financial position at 31 December shows the following balances:  There were no long-term liabilities.
What is the total of Telfer Smith's capital at 31 December?
A)£64 500 
B)£120 500 
C)£84 500 
D)£140 500

Quizplus · Accepted Answer

The total of Telfer Smith's capital can be calculated by adding the balances of all equity accounts which is £64,500 + £20,000 = £84,500.

Telfer Smith's Statement of Financial Position at 31 December Shows