Accounting for IGCSE & O level - Final Statements (Section 14 - No. 28)
If a company's net loss for the year is $5,000, and the owner's beginning capital was $20,000, what will be the ending capital amount, assuming no other transactions?
$15,000
$25,000
$20,000
$0
Explication
Ending Capital = Beginning Capital - Net Loss = $20,000 - $5,000 = $15,000.