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sunlimei

Wanda keeps no accounting records. The following information is available about her position and transactions for
the year ended 31 December 2004:

                                                                                          $
Net assets at 1 January 2004                                         210,000
Drawings during 2004                                                       48,000
Capital introduced during 2004                                      100,000
Net assets at 31 December 2004                                   400,000

Based on this information, what was Wanda’s profit for 2004?
A      $42,000
B      $242,000
C      $138,000
D      $338,000

C

400,000 – 210,000 – 100,000 + 48,000 = 138,000