Use the information below to answer questions
Total current assets………………N2,000
Total fixed assets………………..N4,000
Current liabilities……………….N1,200
Drawings…………………………N200
Long-term loan……………………N2,000
Determine the capital of the business?
- N9,400
- N6,000
- N3,400
-
N3,000
The correct answer is: D
Explanation
Capital = Assets - liabilities
Assets = Fixed assets + current assets + drawings
2000 + 4000 + 200 = 6200
Liabilities = current liabilities + longterm loans
1200 + 2000 = 3200
6200 - 3200 = 3000