Question
If opening capital is £40,000 and closing capital is £30,000 then the movem of the following: The entity made a loss of £20,000. The owner introduced £15,000 and withdrew f The entity made a profit of £20,000 The owner introduced £15,000 The entity made a loss of £20,000 The owner introduced £15,000 The entity made a profit of £20,000 The owner introduced £15,000 and withdre
Answer
3.4
(331 Votes)
Catherine
Master · Tutor for 5 years
Answer
It seems your problem was cut off so I'll solve it based on what's available.# Explanation## Step1 We begin the calculation by identifying starting capital which in this case is
. Every time the owner introduces a sum of money, this augments the capital, moreover profit also augments the capital value .Every time the owner withdraws a sum of money or a loss is countered, these both will deplete the capital value.## Step2Moving for the capital calculations:Our given starting capital / opening capital = £40,000## Step31. The entity made a
loss.So the new capital value will be starting capital - loss suffered, hence capital value below:### ** Opening capital - Loss = New Capital Value **
. 2. The owner then introduced
.So the new capital Value upon introducing
by the owner to be:### ** New Capital Value + introduced amount by owner = Final Capital Value **
. # AnswerTherefore as a result of the £20,000 loss and the introduction of £15,000 by the owner, the capital is now valued at £35,000. Please provide the complete question for a complete computation and a proper answer.