Use the following information to answer the given question \(\begin{array}{c|c} & DR & CR \\ & N & N \\ \hline \text{Goodwill} & 10,000 & \\ \text{Plant and...

Answer Details

The capital of the company can be calculated by finding the total value of its assets and subtracting the total value of its liabilities. Total assets = Goodwill + Plant and Machinery + Freehold premises + stock + debtors + cash in bank + cash in hand = 10,000 + 32,000 + 50,000 + 15,000 + 12,500 + 7,500 + 2,000 = N129,000 Total liabilities = Profit and loss account + Accrued rent + Sundry creditors = 34,000 + 500 + 9,500 = N44,000 Therefore, the capital of the company can be calculated as follows: Capital = Total assets - Total liabilities = N129,000 - N44,000 = N85,000 Hence, the answer is option (C) N85,000.