Calculate the closing capital _____?

1/1/2010 – 31/12/2010

Creditors – #9,000 #9,800
Rent owing – #3,800 #2,500
Rates prepaid – #2,000 #3,500
Motor van – #8,000 #8,000
Premises – #10,000 #10,500

A. #8,700
B. #9,500
C. #9,700
D. #10,700

Correct Answer:

Option C – #9,700

Explanation

capital = assets – liabilities

8,000 +10,500 + 3500 – 2500 – 9800 = 9700