Final answer:
The balance of the Owners' Equity account is calculated by subtracting total liabilities from the total assets. Given the provided figures, the equity is calculated as $42,000 in assets minus $21,000 in liabilities, resulting in $21,000 for Owners' Equity. The answer does not match any of the provided options, indicating a potential error in the question or options.
Step-by-step explanation:
To calculate the owners' equity of the business, we need to use the accounting equation which states that Assets = Liabilities + Owners' Equity. From the information given, we can summarize the assets and liabilities as follows:
- Assets: Bank = $2,000; Accounts Receivable = $13,000; Motor Vehicles = $27,000; Total Assets = $2,000 + $13,000 + $27,000 = $42,000
- Liabilities: Accounts Payable = $9,000; Bank Loan = $12,000; Total Liabilities = $9,000 + $12,000 = $21,000
To find the owners' equity, we subtract the total liabilities from the total assets:
Total Assets - Total Liabilities = Owners' Equity
$42,000 - $21,000 = $21,000
Therefore, the balance of the Owners' Equity account is $21,000. However, this answer is not listed in the provided options (a) $1,000 (b) $3,000 (c) $6,000 (d) $9,000, which implies there might be a mistake or misunderstanding in the question or the supplied options.