Sergei has £8658 in his business bank account at 1 March 20X4. On 2 March he pays in a cheque due in respect of a trade receivable for £6620.
On 3 March he buys a non-current asset for £9020.
On 4 March he draws his usual monthly salary of £1000 from the business.
On 5 March he pays in a cheque for £15 000 in respect of a loan he has just received from a small business expansion scheme.The loan is due for repayment in 20X7.
What is the effect of these transactions on Sergei's capital?
A) Decrease capital by £1000
B) Decrease capital by £16 000
C) Increase capital by £15 000
D) Decrease capital by £15 000
Correct Answer:
Verified
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