A business owner has provided you with the following information on their market trading business. Flat - leasehold £150000, inventory of goods £8000 bought for next market, van £2000, bank overdraft £700, stall £1 500. What is the owners' equity?
A) £161500
B) £11500
C) £160800
D) £10800
E) None of the above

Question

Quizplus · Accepted Answer

To calculate the owner's equity, we need to take the total assets and subtract the total liabilities.

Total assets = Flat + Inventory + Van + Stall
Total assets = £150,000 + £8,000 + £2,000 + £1,500 
Total assets = £161,500

Total liabilities = Bank Overdraft 
Total liabilities = £700

Owner's equity = Total assets - Total liabilities 
Owner's equity = £161,500 - £700 
Owner's equity = £160,800

Therefore, the answer is C) £160,800.

A Business Owner Has Provided You with the Following Information