Given:
Drawings – #3,500
Net loss – #2,500
Capital 1/1/2007 – #35,000
Additional capital – #10,000
The adjusted capital as at 31/1/2007 is
-
A.
#35,000 -
B.
#39,000 -
C.
#45,000 -
D.
#46,000
Correct Answer: Option B
Explanation
Adjusted capital=
capital + additional capital – net loss – drawings
35,000 +10,000 -3500 -2500 = 39,000