Concept:Opening capital is measured by subtracting opening liabilities from opening assets.
Explanation:Assets on 1/1/2010: rates prepaid #2,000 + motor van #8,000 + premises #10,000 = #20,000.
Liabilities on 1/1/2010: creditors #9,000 + rent owing #3,800 = #12,800.
Opening capital = #20,000 − #12,800 = #7,200.
As printed, #7,200 is not among the options; option B is likely intended if #7,700 is a typographical error.
Answer:Opening capital = #7,200