CIMA BA3 · Chapter 11 · Question 12 of 12
A sole trader who has not kept full records provides the following at the start of the year: premises $80,000; equipment $12,000; inventory $9,400; receivables $5,100; cash at bank $2,300; trade payables $6,800; bank loan $25,000. What is her opening capital?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $77,000
Explanation
Opening capital = total assets - total liabilities. Assets = $80,000 + $12,000 + $9,400 + $5,100 + $2,300 = $108,800. Liabilities = $6,800 + $25,000 = $31,800. Capital = $108,800 - $31,800 = $77,000.
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