A trader started business with #30,000 and spent #20,000 in buying premises and equipment, the balance of #10,000 is his

The trader's initial investment of #30,000 is called his capital. When he spent #20,000 on premises and equipment, this amount became part of his fixed capital, which refers to the long-term assets that a business owns and uses to generate income. The remaining #10,000 that he has after the purchase of fixed assets is his working capital. Working capital is the amount of capital that a business has available for day-to-day operations such as buying inventory, paying wages, and other expenses. Therefore, the trader's #10,000 is his working capital.