Jacob's opening capital at 1 July 2017 was $75 000, his profit for the year was
$22 000 and his drawings were $8 000. What is the final balance of his capital at the end of the year?

Question

Quizplus · Accepted Answer

The final balance of the capital can be calculated by adding the opening capital, adding the profit and then subtracting the drawings. 
Calculations:

Opening capital = $75,000 
Profit = $22,000 
Less: Drawings = $8,000

Final Capital = $75,000 + $22,000 - $8,000 
Final Capital = $89,000

Therefore, the final balance of Jacob's capital at the end of the year is $89,000, which is option A.

Jacob's Opening Capital at 1 July 2017 Was $75 000