Question

Preparing a Capital Account
14. From the following particulars, prepare the Proprietor's Capital Account:
2018
April 1 Started business with
45,000
May 10 Withdrew from bank for personal use
10,000
July 15 Further capital introduced
55,000
Aug. 20 Goods withdrawn for personal use
4,000
Sept. 21 Life insurance premium paid
5,000
Nov. 24 Income tax paid
12,000
2019
Mar. 31 Profit for the year
36,000​

Answer 1

Explanation:

Preparing a Capital Account

14. From the following particulars, prepare the Proprietor's Capital Account:

2018

April 1 Started business with

45,000

May 10 Withdrew from bank for personal use

10,000

July 15 Further capital introduced

55,000

Aug. 20 Goods withdrawn for personal use

4,000

Sept. 21 Life insurance premium paid

5,000

Nov. 24 Income tax paid

12,000

2019

Mar. 31 Profit for the year

36,000