The trader’s capital in a single entry system is ascertained by preparing

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.

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