The total assets of Ogo Plc is #16,000 and the liabilities included loan #2,000, creditors #1,000 and electricity bill #2,000. Calculate the capital owned b...

The total assets of Ogo Plc is #16,000 and the liabilities included loan #2,000, creditors #1,000 and electricity bill #2,000. Calculate the capital owned by the company?

Answer Details

To calculate the capital owned by the company, we need to use the accounting equation which states that: Assets = Liabilities + Owner's Equity (Capital) Given that the total assets of Ogo Plc is #16,000 and the liabilities are #2,000 (loan) + #1,000 (creditors) + #2,000 (electricity bill) = #5,000 Substituting the values into the accounting equation, we have: #16,000 = #5,000 + Owner's Equity (Capital) Rearranging the equation, we have: Owner's Equity (Capital) = #16,000 - #5,000 = #11,000 Therefore, the capital owned by the company is #11,000. The answer is.