1 Given the following, what is the amount of Capital? Assets: Premises £20,000; Stock £8,500; Cash £100. Liabilities: Creditors £3,000; Loan from A Adams £4,000 (A) £21,100 (B) £21,600 (C) £32,400 (D)...

1

Given the following, what is the amount of Capital? Assets: Premises £20,000; Stock

£8,500; Cash £100. Liabilities: Creditors £3,000; Loan from A Adams £4,000

(A) £21,100

(B) £21,600

(C) £32,400

(D) £21,400

2

Which of the following is correct?

(A) Profit does not alter capital

(B) Profit reduces capital

(C) Capital can only come from profit

(D) Profit increases capital