Capital account reconciliation requires reversing all transactions Steps:

• Start with closing capital of $17500.
• Add back total drawings of $2000 (cash) and$4000 (asset withdrawal) for $6000.
• Subtract total profits of $3000.
• Subtract additional capital introduced of $5000.
• Result: $17500 +$6000 - $3000 -$5000 = $15500 initial capital.

Not enough information: Profits and drawings are totals over 3 years, but year 3 capital transactions (introduction and withdrawal) require separating year 3 operational items to reverse accurately; aggregated data makes initial capital indeterminate from options.

Why C is wrong:

• $12000 ignores proper reversal of year 3 asset withdrawal as a drawing, understating initial by$4000.

Final answer: Not enough information.