# #
Capital 8000 Plant and machinery 5000
Net profit 4000 Motor van 4500
Drawings 200 Stock 2000
Creditors 2000 Debtor 1000
Accruals 300 Bank 100
Cash 600
14100 14100

A. 1.13 : 1
B. 2 : 1
C. 4.75 : 1
D. 4.25 : 1

Correct Answer:

Option A = 1.13 : 1

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