A Level Accounting (9706)•9706/11/M/J/20
Explanation
Capital Calculation Requires Profit Information Steps:
- Identify starting capital: $19,000.
- Note total drawings: cash 1,100 = $25,600.
- Recall formula: Ending capital = Starting capital + Net profit - Total drawings.
- Observe no net profit provided, preventing calculation.
Why C is correct:
- Not applicable; question lacks net profit data.
Why the others are wrong:
- A, B, D: All assume unstated profit or ignore drawings, but insufficient info invalidates any choice.
Not enough information. Final answer: Not enough information.
Topic: Preparation of financial statements
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