For a sole proprietor in their first year of trading which elements make up owners’ capital in their financial statements? a) Capital introduced + profit in period + drawings b) Capital introduced + profit in period – drawings c) Net assets + capital introduced – drawings d) Capital introduced + fixed assets - liabilities Mango has a 31 December year end. A motor vehicle was acquired in July 2018 for £20,000. Depreciation is charged at 25% reducing balance basis, with a full year’s charge in year of purchase and none in year of sale. The vehicle was sold for £10,000 is July 2020. What is the profit or loss on disposal? a) Loss £850 b) Profit £1,250 c) nil profit or loss d) Loss £1,250
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For a sole proprietor in their first year of trading which elements make up owners’ capital in their financial statements?
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a) Capital introduced + profit in period + drawings
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b) Capital introduced + profit in period – drawings
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c) Net assets + capital introduced – drawings
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d) Capital introduced + fixed assets - liabilities
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Mango has a 31 December year end. A motor vehicle was acquired in July 2018 for £20,000.
Depreciation is charged at 25% reducing balance basis, with a full year’s charge in year of purchase and none in year of sale. The vehicle was sold for £10,000 is July 2020. What is the profit or loss on disposal?
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a) Loss £850
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b) Profit £1,250
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c) nil profit or loss
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d) Loss £1,250
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