The following details relate to the equity of J.Tan,sole proprietor.
End year 1 End year 2
Capital $160 000 $160 000
Current account 46 000 Cr 58 000 Cr*
*Includes profit for the year of $51 000.
How much was withdrawn by J.Tan during year 2?

Question

Quizplus · Accepted Answer

The increase in the current account balance of $12 000 ($58 000 Cr - $46 000 Cr) includes the profit for the year of $51 000. This means that J.Tan withdrew $39 000 ($51 000 - $12 000) during Year 2.

The Following Details Relate to the Equity of J