Mrs Adaeze operates a sole trader business. At 1 January 2023 her capital was ₦2,100,000. During the year she introduced additional capital of ₦300,000, withdrew ₦480,000 for personal use, and earned a net profit of ₦750,000. What is her closing capital as at 31 December 2023?

Closing capital = Opening capital + Additional capital introduced + Net profit − Drawings = ₦2,100,000 + ₦300,000 + ₦750,000 − ₦480,000 = ₦2,670,000. This reconciliation is a standard feature of the statement of changes in equity for a sole trader and confirms the double-entry integrity of the final accounts.