Jayantha commenced business on 1 January 2021 with equity of £90,000. During the year ending on 31 December 2021 he paid £ 94,000 to purchase goods for sale (all of which were sold) and £32,450 for various expenses. He received £139,500 from the sale of goods. Jayantha has drawn £12,000 in cash and introduced a motor car valued at £11,000 to the business.
Jayantha commenced business on 1 January 2021 with equity of £90,000. During the year ending on 31 December 2021 he paid £ 94,000 to purchase goods for sale (all of which were sold) and £32,450 for various expenses. He received £139,500 from the sale of goods. Jayantha has drawn £12,000 in cash and introduced a motor car valued at £11,000 to the business.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Jayantha commenced business on 1 January
2021
with equity of
£90,000.
During the year ending on 31 December
2021
he paid £
94,000
to purchase goods for sale (all of which were sold) and
£32,450
for various expenses. He received
£139,500
from the sale of goods. Jayantha has drawn
£12,000
in cash and introduced a motor car valued at
£11,000
to the business.What is Jayantha's equity at 31 December
2021?
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