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    Question

    1.    Given the following, what is the amount of

    Capital? Assets: Premises 20,000; Inventory 8,500; Cash 100. Liabilities: Trade Payables 3,000; Loan from A Adams 4,000.
    A 21,100 Correct Answer Incorrect Answer
    B 21,600 Correct Answer Incorrect Answer
    C 32,400 Correct Answer Incorrect Answer
    D 21,400 Correct Answer Incorrect Answer
    E 21,500 Correct Answer Incorrect Answer

    Solution

    Capital = Assets - Liabilities = (Premises + Inventory + Cash) - (Trade payable + Loans) = (20000+8500+100) - (3000+ 4000) = 21,600

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