Net capital is the value of your business after subtracting what you owe (liabilities) from what you own (assets). It shows your business’s financial strength.
Example:
Let’s say you run a small clothing boutique in Cape Town. You have:
Total assets = R80 000
Now, you also owe:
Total liabilities = R40 000
Net capital = R80 000 – R40 000 = -R40 000