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JAMB Commerce 2001 Question 14

Question 14

Business Calculations

Use the balance sheet below to answer questions 13 and 14.
Mama Trading Company
Liabilities (₦): Capital 140; Opening capital 350; Add Net profit 80; Current liabilities 800; Total 1,370
Assets (₦): Fixed 1000; Current: Debt 200, Stock 70, Bank 50, Cash 50; Total 1,370
The capital owned is

  1. A.₦2,740
  2. B.₦1,350
  3. C.₦1,150
  4. D.₦570.
Show the answer and explanation

Answer: D (₦570.)

Explanation

Capital owned = 140 + 350 + 80 = ₦570 (also total assets 1,370 − liabilities 800).