CSEC POA June 2024 P1 #1-20

Answer explanation

Opening capital + Net Profit - Drawings = Closing capital

Net Profit = 4860-3900+900 = 1860

Answer explanation

If a partnership agreement does not exist, profits and losses must still be shared.

Answer explanation

The Sales Ledger Control account should be used to find the balance. Cash Sales is not included as inventory sold for cash is not recorded in accounts receivables.

Answer explanation

320 + 50 = 370

Answer explanation

Capital expenditure is the money spent by a firm to acquire assets or to improve the quality of existing ones.

Revenue expenditure is the money spent by business entities to maintain their everyday operations.