Sole trader closing capital equals net assets

Steps:

• Total assets = non-current assets + trade receivables + bank = 41,000 + 12,000 + 3,600 = 56,600
• Total liabilities = trade payables + long-term bank loan = 4,500 + 6,000 = 10,500
• Net assets (closing capital) = total assets - total liabilities = 56,600 - 10,500 = 46,100
• Drawings reduce capital but are already reflected in year-end bank balance, so no additional subtraction

Why B is correct:

• B matches net assets using the balance sheet equation Assets = Liabilities + Capital, where capital is the balancing figure at year end

Why the others are wrong:

• A subtracts drawings twice from net assets
• C excludes bank from assets
• D adds extra to assets without basis

Final answer: B