Calculate the opening capital as at 1 May 2018.

Step 1: Calculate the opening capital as at 1 May 2018.
Capital is calculated as Total Assets minus Total Liabilities.
The provision for doubtful debts is a contra-asset account and reduces the value of debtors.

Assets as at 1 May 2018:

• Vehicles: NS80,000
• Inventory: NS10,400
• Stationery on hand: NS300
• Debtors: NS7,500
• Less: Provision for doubtful debts: (NS400)
• Net Debtors: NS7,100
• Land and buildings: NS142,000
• Bank: NS(2,400) (This is an overdraft, so it's a liability, not an asset)

Total Assets (1 May 2018):

$$\begin{align*} \text{Total Assets} &= \text{Vehicles} + \text{Inventory} + \text{Stationery on hand} + \text{Net Debtors} + \text{Land and buildings} \\ &= \text{NS}80,000 + \text{NS}10,400 + \text{NS}300 + \text{NS}7,100 + \text{NS}142,000 \\ &= \text{NS}239,800 \end{align*}$$

Liabilities as at 1 May 2018:

• Loan: Tsandi bank: NS8,500
• Electricity in arrears: NS1,500
• Creditors: NS3,520
• Bank (overdraft): NS2,400

Total Liabilities (1 May 2018):

\begin{align*}