Final answer:
The capital of a sole trader would change as a result of personal petrol being paid for out of the business's petty cash, which is considered an owner's drawing.
Step-by-step explanation:
The question pertains to changes in the capital of a sole trader as a result of certain business transactions. Let's look at the options provided:A credit customer paying by bank transfer would increase the business's cash but does not directly affect the capital, as it is essentially a conversion of accounts receivable into cash.Purchasing raw materials on credit increases both the business’s inventory and its liabilities (accounts payable), but does not change the owner's capital.Acquiring non-current assets on credit would increase assets and liabilities without a direct change to the capital account.Using the business's petty cash to pay for personal petrol is an example of an owner’s drawings, which decreases the capital directly as it represents funds taken out of the business for personal use.Therefore, the capital of a sole trader would change as a result of personal petrol being paid for out of the business's petty cash.
The capital of a sole trader would change as a result of raw materials being purchased on credit (option B). When raw materials are purchased on credit, it increases the liabilities of the business and decreases the cash or bank balance. Liabilities are the debts or obligations of the business, and when they increase, it decreases the owner's capital, which represents the owner's investment in the business.