1/1/2010                     31/12/2010
Creditors - #9,000            #9,800
Rent owing - #3,800        #2,500
Rates prepaid - #2,000   #3,500
Motor van - #8,000         #8,000
Premises - #10,000        #10,500

Calculate the closing capital.

A.

#8,700

B.

#9,500

C.

#9,700

D.

#10,700

Correct answer is C

capital = assets - liabilities

8,000 +10,500 + 3500 - 2500 - 9800 = 9700