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SingaporeAccountingQuick questions

Financial Statements of a Sole Proprietor

Quick questions on The statement of financial position explained: O-Level Principles of Accounts

5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is the capital section?
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For a sole proprietor, the capital account ties the income statement to the position:
What is net current assets (working capital)?
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$Net current assets=Current assets−Current liabilities\text{Net current assets} = \text{Current assets} - \text{Current liabilities}$
What is q1?
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State the formula for closing capital of a sole proprietor. [2 marks]
What is q2?
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Current assets are \24,000andcurrentliabilities and current liabilities \15,00015,000. State the net current assets. [1 mark]
What is q3?
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Opening capital is \50,000,profit, profit \20,00020,000 and drawings \12,000$. State the closing capital. [2 marks]

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