Use the information below to answer questions
Zazzau Company:
Cash in hand................N50
Cash in bank................N1,250
Stock.......................N4,880
Furniture...................N960
Building....................N5,500
Debtor......................N1,750
Creditors...................N2,150
Drawings of N125 were made by the shareholders of the company.
The capital of the company stands at?
N12,240
N12,115
N2,510
N2,150
Correct answer is A
Capital means the assets and cash in a business. It may either be cash, machinery, receivable accounts, property, or houses.
50 + 4,880+ 1,750 + 1,250 + 960+ 5,500 = 14,390
14,390 - 2,150 = 12,240