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IGCSE Accounting

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How do you do Capital Accounts?
DR drawings,
CR Capital Introduced, Net Profit,
What else??
Thanks Xander
 
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Dear Sir,Madam

I have an issues that need clarification:
In Accounting (7110/22 Paper 2 October/November 2011) Q4 part (d)
it says "Obtain a long term loan, $10 000." would increase WORKING CAPITAL by 10 000.
is it correct? if so please give some explanation.
 
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Dear Sir,Madam

I have an issues that need clarification:
In Accounting (7110/22 Paper 2 October/November 2011) Q4 part (d)
it says "Obtain a long term loan, $10 000." would increase WORKING CAPITAL by 10 000.
is it correct? if so please give some explanation.
Ofcourse it will! Because working capital is the captial you use for day to day transactions.
 
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You were talking about long term loan??
Then it would have no effect.
it is given in CIE paper ( Accounting (7110/22 Paper 2 ,October/November 2011) Q4 part (d))
as an example, it says it will INCREASE.
Now i'am confused.
could you please go through this question and let me know the correct answer. this paper is available in this site.
 
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it is given in CIE paper ( Accounting (7110/22 Paper 2 ,October/November 2011) Q4 part (d))
as an example, it says it will INCREASE.
Now i'am confused.
could you please go through this question and let me know the correct answer. this paper is available in this site.
working capital will increase as current assets will increase because of the finance obtained by the long term loan...
 
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it is given in CIE paper ( Accounting (7110/22 Paper 2 ,October/November 2011) Q4 part (d))
as an example, it says it will INCREASE.
Now i'am confused.
could you please go through this question and let me know the correct answer. this paper is available in this site.
Maybe the loan is paid into the bank, therefore the working capital will increase
 
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what questions are most likely going to come up?
thanks :)

A big clubs and society question, most probably a depreciation and disposal question, limited co., partnership won't come for sure, maybe bank reconcillation.
 
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