O Level Accounting (7707)•7707/11/M/J/23

Explanation
Capital change formula Steps:
- Change in capital = Capital introduced + Profit - Drawings.
- Given change = -7000, so introduced - drawings = -$9000.
- Compute net for A: 6000 = -5000 + 2000).
- Compute net for B: 8000 = -1000); C: 8800 = -200); D: 4600 = -4400).
- No option yields -$2000 change.
Why A is correct:
- Not applicable; no option fits the formula for -$2000 change.
Why the others are wrong:
- B results in +2000.
- C results in +2000.
- D results in +2000.
Final answer: Not enough information.
Topic: Sole traders
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