Question

Given the following, what is the ammoubt of capital? Assets: premises $20,000; stock $8,500 ; Cash $100; Liabilities, Creditors $3,000 ; loan from A Adam $4,000
(A) : $21,100
(B): $21,600
(c). $32,400
D) $21,400

Answer 1

Answer:

21,600

Explanation:

Capital = Total Asset - Total Liabilities

Total Asset = 28,600

1. Premises = 20,000
2. Stock = 8,500
3. Cash = 100

Total Liabilities = 7,000

1. Creditors = 3,000
2. Loan = 4,000

Capital = 28,600 - 7,000

Capital = 21,600