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On September 1, 2020, Windburn began a service proprietorship with an initial investment of P400,000. Windburn provided P800,000 of services during September. Collections were made except for P200,000 which were paid the following month. Expenses were incurred in the amount of P400,000 including P100,000 which are to be paid next month. Windburn withdraw P60,000 against the capital account.
Problem 1: In September 30, 2020 financial statement, what amount of capital should be reported under the cash basis accounting?
a. 640,000
b. 740,000
c. 800,000
d. 840,000
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