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GCE Financial Accounting 1989 Question 11

Question 11

Final Accounts of a Sole Trader

Which of the following would be posted to the proprietor's capital account?

  1. A.Gross sales
  2. B.Gross profit
  3. C.Net sales
  4. D.Net profit
  5. E.Manufacturing profit.
Show the answer and explanation

Answer: D (Net profit)

Explanation

Net profit belongs to the owner and is added to his capital.