Determine the capital balance as at Dec. 31 2005?

Use the information below to answer the question.

…………………….31 Dec. 05……..31 Dec. 06

Total fixed assets………N7 800…………N6 600
Total current assets…….N12 100…………N17800
Total current liabilities..N4 700…………N3 800

Drawings for 2006 is N5 200.

A. N20 600
B. N15 200
C. N13 800
D. N11 600

Correct Answer:

Option B – N15 200