John commenced business on 1 January 20x7 with a capital in cash of €20 000. During the year ending on 31 December 20x7 he bought 6 450 leather brief cases at €30 each and sold 5 800 of then at €50 each. Other expenses MCFM_FR&A (All Campuses) – SUJET Drill-Testing Random Qs’(F2020) 4 during the year amounted to €72 500. An inventory (stock) take on 31 December 20x7 established that he holds a inventory (stock) of 630 unsold briefcases. The rest of the briefcases have gone missing. Calculate his capital (equity) as at 31 December 20x7. A) €62 900 B) €63 500 C) €20 000 D) 43 000

Answer rating: 100% (QA)

Answer Option C 63500 Explanations Step 1 calculation ... View the full answer