If a business has R300 000 assets, R100 000 liabilities, and R50 000 drawings, and net profit R80 000, what was the opening equity?

The accounting equation states:

$$\text{Assets} = \text{Liabilities} + \text{Equity}$$

Given:
Assets = R300 000
Liabilities = R100 000

Rearranging the equation to solve for Equity:

$$\text{Equity} = \text{Assets} - \text{Liabilities}$$ $$\text{Closing Equity} = \text{R300 000} - \text{R100 000}$$ $$\text{Closing Equity} = \text{R200 000}$$

The formula for calculating closing equity from opening equity is:

$$\text{Closing Equity} = \text{Opening Equity} + \text{Net Profit} - \text{Drawings}$$

Given:
Closing Equity = R200 000 (from Step 1)
Net Profit = R80 000
Drawings = R50 000

Substitute these values into the formula:

$$\text{R200 000} = \text{Opening Equity} + \text{R80 000} - \text{R50 000}$$ $$\text{R200 000} = \text{Opening Equity} + \text{R30 000}$$

Now, solve for Opening Equity:

$$\text{Opening Equity} = \text{R200 000} - \text{R30 000}$$ $$\text{Opening Equity} = \text{R170 000}$$

The final answer is $\text{B}$