Use of following information to answer questions below D Motor vehicle 500000 Stock 35000 Debtors 18000 Cash 12850 Bank overdraft 280000 Creditors 21500 The...
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.