Calculation of Total Assets

To calculate the total assets of a business, we need to consider the capital and liabilities. Total assets represent the value of all the resources owned by a business, which can include cash, inventory, property, and equipment.

Step 1: Identify the Components of Total Assets
Total assets are typically divided into two categories: current assets and non-current assets. Current assets are those that are expected to be converted into cash within a year, while non-current assets are those that have a longer useful life.

Step 2: Calculate Current Assets
To calculate current assets, we need to consider the capital and liabilities provided in the question. Capital represents the owner's investment in the business, while liabilities represent the debts or obligations of the business.

Current assets can be calculated using the following formula:
Current Assets = Total Assets - Non-Current Assets

Step 3: Calculate Non-Current Assets
To calculate non-current assets, we subtract the current liabilities from the total liabilities.

Non-Current Assets = Total Liabilities - Current Liabilities

Step 4: Calculate Total Assets
Finally, we can calculate the total assets by adding the current assets and non-current assets.

Total Assets = Current Assets + Non-Current Assets

Example Calculation
Given:
Capital = $80,000
Liabilities = $50,000

Step 1: Identify the Components of Total Assets
- Current Assets
- Non-Current Assets

Step 2: Calculate Current Assets
Current Assets = Total Assets - Non-Current Assets
We don't have enough information to calculate the non-current assets, so we cannot determine the current assets.

Step 3: Calculate Non-Current Assets
Non-Current Assets = Total Liabilities - Current Liabilities
We don't have information about the current liabilities, so we cannot determine the non-current assets.

Step 4: Calculate Total Assets
Total Assets = Current Assets + Non-Current Assets
Since we couldn't determine the current and non-current assets, we cannot calculate the total assets.

Without information about the current and non-current assets, we cannot accurately determine the total assets of the business.