What is the capital from the opening balance sheet?

Given: 31/12/98 31/12/99
Assets: Plant and Mach. N1,500 N1,200
Fixtures N700 N520
Stock N500 N600
Debtors N900 N400
Cash N200 N300
Liabilities: Creditor N500 N600
Loan N600 N400

A. N3,600
B. N 2,700
C. N2,070
D. N1,520

Correct Answer:

Option B – N 2,700