Use the information below to answer questions Total current assets..................N2,000 Total fixed assets....................N4,000 Current liabilities...................N1,200 Drawings..............................N200 Long-term loan........................N2,000 Determine the capital of the business?

Use the information below to answer questions

Total current assets..................N2,000

Total fixed assets....................N4,000

Current liabilities...................N1,200

Drawings..............................N200

Long-term loan........................N2,000

Determine the capital of the business?

The correct answer is D. N3,000

Capital = Assets - liabilities

Assets = Fixed assets + current assets + drawings

2000 + 4000 + 200 = 6200

Liabilities = current liabilities + longterm loans

1200 + 2000 = 3200

6200 - 3200 = 3000