Parminder, a sole trader, makes a profit of £25,600 in the year ended 30 June 2019. Her capital account balance at 1 July 2018 was £76,750 and she withdrew £55,200 from the business during the year for her own expenses. What is the balance on Parminder's capital account at 30 June 2019?
A) £47,150
B) £76,750
C) £102,350
D) £157,550

Question

Quizplus · Accepted Answer

The capital account balance at the end of the year is calculated as the opening balance plus profit minus withdrawals: £76,750 + £25,600 - £55,200 = £47,150.

Parminder, a Sole Trader, Makes a Profit of £25,600 in the Year