The following are balances on the accounts of David, a sole trader, as at the end of the current financial year and after all entries have been processed and the profit for the year has been calculated.
| $ | |
| Non-current assets | 21,250 |
| Receivables | 1,750 |
| Trade payables | 750 |
| Bank loan | 3,750 |
| Allowance for depreciation, non-current assets | 3,750 |
| Inventory | 1,000 |
| Accruals | 250 |
| Prepayments | 500 |
| Bank overdraft | 500 |
What is the balance on David’s capital account?
Answer
| Debit | Credit | |
| $ | $ | |
| Non-current assets | 21,250 | |
| Receivables | 1,750 | |
| Trade payables | 750 | |
| Bank loan | 3,750 | |
| Allowance for depreciation, non-current assets | 3,750 | |
| Inventory | 1,000 | |
| Accruals | 250 | |
| Prepayments | 500 | |
| Bank overdraft | – | 500 |
| 24,500 | 9,000 |
Capital = $24,500 – $9,000= $15,500