David's revenue for 20X4 was £118 800 and his net profit percentage was 16.5%.His opening capital balance was £15 557 and his drawings for the year were £17 900.He did not introduce any further capital during 20X4.What was David's closing capital balance at the end of the 20X4 financial year?

Question

Quizplus · Accepted Answer

First, we need to find David's net profit for the year, which is calculated as follows:
Net Profit = Revenue * Net Profit Percentage
Net Profit = £118 800 * 16.5%
Net Profit = £19 602
Next, we need to calculate David's closing capital balance, which is calculated as follows:
Closing Capital Balance = Opening Capital Balance + Net Profit - Drawings
Closing Capital Balance = £15 557 + £19 602 - £17 900
Closing Capital Balance = £17 259
Therefore, the answer is C (£17 259).

David's Revenue for 20X4 Was £118 800 and His Net