Capital equals total assets minus total liabilities Steps:

• Initial capital on 1 April 2022: $30,000 (owner's investment).
• On 31 March 2023, listed asset: machinery at net book value $38,000.
• Listed liability: long-term bank loan $15,000.
• Total assets and other liabilities (e.g., cash, additional assets, or debts) not provided. Not enough information to calculate exact capital, as full balance sheet details are missing.

Why B is correct:

• Cannot confirm; $38,000 matches machinery value but ignores liabilities and potential other assets.

Why the others are wrong:

• A: Assumes no change in capital, ignoring possible profits/losses or incomplete balance.
• C: No basis; $45,000 might imply unlisted assets like initial cash plus loan, but speculative.
• D: No basis; $53,000 might imply total assets before subtracting loan, but unsubstantiated.

Final answer: Not enough information.