The trader’s capital in a single entry system is ascertained by preparing
-
A.
gross profit -
B.
statement of affairs -
C.
suspense account -
D.
appropriation account
Correct Answer: Option B
Explanation
A Statement of Affairs is a document detailing a company’s assets and liabilities. Generally prepared by a liquidator or appointed professional during certain insolvency proceedings, the document is later registered at Companies House, where it becomes available for public view.