A Smart sets up a new business. Before he actually sells anything, he has bought motor vehicle

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A Smart sets up a new business. Before he actually sells anything, he has bought motor vehicle £2,000, premises £5,000, stock of goods £1,000. He did not pay in full for his stock of goods and still owes £400 in respect of them. He had borrowed £3,000 from D Bevan. After the events just described, and before trading starts, he has £100 cash in hand and £700 cash at bank.

You are required to calculate the amount of his capital.

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ISE Business Accounting Volume 1

ISBN: 9780273638391

8th Edition

Authors: Frank Wood, Alan Sangster

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