Given:Liabilities..............₦23,700 Current assets...........₦20,300 Fixed assets.............₦64,500What is the capital introduced by the proprietor?
Fixed assets.............₦64,500What is the capital introduced by the proprietor?
Answer Details
We can use the accounting equation:
Assets = Liabilities + Capital
We have the values for Liabilities and the total Assets, which is the sum of Current assets and Fixed assets.
Assets = Current assets + Fixed assets = ₦20,300 + ₦64,500 = ₦84,800
Now we can rearrange the equation to solve for Capital:
Capital = Assets - Liabilities = ₦84,800 - ₦23,700 = ₦61,100
Therefore, the capital introduced by the proprietor is ₦61,100.