Natalia's Business Bank Account Shows a Balance at 1 December

Multiple Choice

Natalia's business bank account shows a balance at 1 December 20X6 of £3350 in her favour.On 2 December she draws out £500 for her own personal use.On 3 December she pays an amount owing of £1050 and pays into the bank a cheque for £250 which is due from HMRC in respect of VAT. What is the effect of these transactions on Natalia's capital?

A) Decrease capital by £250
B) Decrease capital by £1300
C) No effect
D) Decrease capital by £500