Capital is the amount of money that an individual or a company has invested in a business, which represents the ownership interest. It can be calculated by subtracting liabilities from assets.
In this case, the assets are:
- Fixtures: #30,000
- Debtors: #7,000
- Stock: #8,000
- Goodwill: #10,000
Total assets: #30,000 + #7,000 + #8,000 + #10,000 = #55,000
Liabilities are amounts owed to others, in this case:
- Creditors: #3,000
Total liabilities: #3,000
Capital = Total assets - Total liabilities
Capital = #55,000 - #3,000
Capital = #52,000
Therefore, the capital is #52,000.