The records of Superstores shows a loan of #14,000 from Bala,creditor #8,000 and assets #190,500. What is the firm's capital?

  • A #184, 000
  • B #196,500
  • C #212,000
  • D #168,500
jamb 2016accounting

The correct answer is D. #168,500

The net working capital formula is calculated by subtracting the current liabilities from the current assets. 

Assets = 190,500

liabilities = 14,000 + 8,000 = 22,000

190,500 - 22,000 = 168,000 (capital)

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