The assets and liabilities of Angus & Co.at 31st Dec were as follows:
$$\begin{array} { l c }
\text { Inventory } & 110,950 \
\text { Trade receivables } & 12,600 \
\text { Trade payables } & 18,000 \
\text { Accruals } & 750 \
\text { Prepayments } & 850 \
\text { Bank balance } & £ 8,000
\end{array}$$
What is the capital at 31st December
A) £151,150
B) £151,250
C) £113,650
D) £113,450

Question

The assets and liabilities of Angus & Co.at 31st Dec were as follows:
$$\begin{array} { l c } 
\text { Inventory } & 110,950 \
\text { Trade receivables } & 12,600 \
\text { Trade payables } & 18,000 \
\text { Accruals } & 750 \
\text { Prepayments } & 850 \
\text { Bank balance } & £ 8,000
\end{array}$$
What is the capital at 31st December
A) £151,150
B) £151,250
C) £113,650
D) £113,450

Quizplus · Accepted Answer

To calculate the capital at 31st December, we need to find the net assets, which is the difference between total assets and total liabilities. Total assets = Inventory + Trade receivables + Prepayments + Bank balance = 110,950 + 12,600 + 850 + 8,000 = £132,400. Total liabilities = Trade payables + Accruals = 18,000 + 750 = £18,750. Net assets (Capital) = Total assets - Total liabilities = 132,400 - 18,750 = £113,650.

The Assets and Liabilities of Angus & Co What Is the Capital at 31st December A) £151,150 B)

The Assets and Liabilities of Angus & Co What Is the Capital at 31st December
A) £151,150
B)