SECTION A (30 marks): Answer ALL Questions in this section.

Step 1: Understand the context. For a small-scale self-employed trader who does not keep proper books of account, profit or loss is usually ascertained using the Statement of Affairs method (also known as the single entry system). This method compares the capital at the beginning and end of an accounting period. Step 2: Identify the components of the formula. The key components are: • Closing Capital: Capital at the end of the accounting period. • Opening Capital: Capital at the beginning of the accounting period. • Drawings: Money or goods withdrawn by the owner for personal use during the period. • Additional Capital: Any extra capital introduced by the owner during the period. Step 3: Deduce the formula. The formula for net profit or loss is derived by adjusting the change in capital for drawings and additional capital. Net Profit/Loss = (Closing Capital + Drawings) - (Opening Capital + Additional Capital) Alternatively, it can be written as: Net Profit/Loss = Closing Capital + Drawings - Additional Capital - Opening Capital The final formula is: Net Profit/Loss = Closing Capital + Drawings - Additional Capital - Opening Capital Send me the next one 📸