1. Ella has been running a yoga school as a sole trader for several years. During the pandemic her trading results suffered and she closed the business on 31" July 2020. Her recent results are as follows: Year ended 31 January 2019 45.000 Year ended 31 January 2020 20,000 Seven months ended 31 July 2020 (35.000) She has overlap profits of E2.500. Required: Calculate Ella's terminal loss and show how it may be relieved.

1. Ella has been running a yoga school as a sole trader for several years. During the pandemic her trading results suffered and she closed the business on 31" July 2020. Her recent results are as follows: Year ended 31 January 2019 45.000 Year ended 31 January 2020 20,000 Seven months ended 31 July 2020 (35.000) She has overlap profits of E2.500. Required: Calculate Ella's terminal loss and show how it may be relieved.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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