Use of following information to answer questions below D Motor vehicle 500000 Stock 35000 Debtors 18000 Cash 12850 Bank overdraft 280000 Creditors 21500 The...
Question 1 Report
Use of following information to answer questions below
| D | |
| Motor vehicle | 500000 |
| Stock | 35000 |
| Debtors | 18000 |
| Cash | 12850 |
| Bank overdraft | 280000 |
| Creditors | 21500 |
The capital is
Answer Details
To calculate the capital, we need to find the difference between the total assets and the total liabilities of the business.
Given the information provided:
Motor vehicle: D 500,000
Stock: D 35,000
Debtors: D 18,000
Cash: D 12,850
Bank overdraft: D 280,000
Creditors: D 21,500
Total Assets = Motor vehicle + Stock + Debtors + Cash = D 500,000 + D 35,000 + D 18,000 + D 12,850 = D 565,850
Total Liabilities = Bank overdraft + Creditors = D 280,000 + D 21,500 = D 301,500
Now, we can calculate the capital:
Capital = Total Assets - Total Liabilities = D 565,850 - D 301,500 = D 264,350
Therefore, the capital is D 264,350.
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