Use the information below to answer this questionSegunOjo, didn’t keep her books on double principle. On 1st Jan, 2014, cash in hand was 850, bank overdraft...

Answer Details

To determine the closing capital as at 31/12/2014, we need to calculate the total assets and total liabilities of SegunOjo's business as at that date, and then subtract the total liabilities from the total assets. The resulting figure will be the closing capital. Total assets as at 31/12/2014: - Cash in hand: 1200 - Cash at bank: 2500 - Debtors: 10000 - Stock: 20500 - Furnishing: 4000 Total assets = 1200 + 2500 + 10000 + 20500 + 4000 = 41,700 Total liabilities as at 31/12/2014: - Creditors: 17000 Total liabilities = 17000 Closing capital = Total assets - Total liabilities = 41,700 - 17000 = 27,700 Therefore, the closing capital as at 31/12/2014 is 27,700. Option (D) is the correct answer.