Closing Capital​ and drawing (video below)

A sole trader’s business made a profit of $65,000 during the year ended 31 March 20X7. This figure was after deducting $200 per week wages for himself. In addition, he put his home telephone bill through the business books, amounting to $800 plus sales tax at 15%. He is registered for sales tax and therefore has charged only the net amount to his statement of profit or loss and other comprehensive income.

His capital at 1 April 20X6 was $13,000. What was his capital at 31 March 20X7?

Answer

$

Capital at 1 April 20X6                        13,000

Add: profit (after drawings)                65,000

Less: sales tax element(800 x 16%)      (128)

Capital at 31 March 20X7                    77,872