In the current year Ms B. Seen operated Main Events. The business earned $50,000 profit for the year. Its assets increased by $100,000 and its liabilities increased by $30,000. What was the net amount of the capital contributions or drawings taken by Ms Seen during the year?

Question

Quizplus · Accepted Answer

The net amount of capital contributions or drawings taken by Ms Seen during the year can be calculated using the following formula:Net capital contributions/drawings = Profit + Increase in assets - Increase in liabilitiesSubstituting the given values into the formula, we get:Net capital contributions/drawings = $50,000 + $100,000 - $30,000 = $120,000Since the net amount is positive, it indicates that Ms Seen made capital contributions of $120,000 during the year.

In the Current Year Ms B