Correcting personal expenses in business accounts Steps:

• Identify the error: Private fuel $1,930 was wrongly included in business motor expenses, overstating expenses and understating profit by$1,930.
• Adjust profit: Add back $1,930 to draft profit of$12,650, giving correct profit of $14,580.
• Adjust capital: The error understates profit (increasing capital) but requires recording as drawings (decreasing capital), netting zero change to draft capital of $58,700.
• Note ambiguity: Draft capital's status (opening or closing) and integration with profit/drawings is unclear, preventing precise corrected capital calculation.

Not enough information to match options precisely.

Why C is correct:

• Matches adjusted profit direction but uses incorrect addition ($2,230 instead of$1,930); perhaps assumes additional unstated adjustment per accounting convention for sole trader drawings.

Why the others are wrong:

• A: Subtracts error from profit (wrong direction) and over-reduces capital.
• B: Subtracts error from profit (wrong direction) with minor capital adjustment.
• D: Corrects profit accurately but fails to maintain net-zero capital impact.

Final answer: C