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JAMB Commerce 2022 past questions and answers

2 questions. Try each one, then open the answer to check yourself and read the explanation.

Question 15

Business Calculations

Use the information below to answer questions 15 and 16.
Balance Sheet of LMN as at 31/12/2003
Ordinary share capital ₦25,000,000 | Fixed assets ₦26,000,000
Revenue reserve ₦10,000,000 | Investment ₦22,000,000
General reserve ₦3,000,000 | Current assets ₦5,000,000
Long-term liabilities ₦4,000,000 |
Current liabilities ₦11,000,000 |
Total ₦53,000,000 | Total ₦53,000,000

What is the net working capital?

  1. A.₦6,000,000
  2. B.₦16,000,000
  3. C.(₦6,000,000)
  4. D.(₦11,000,000)
Show the answer and explanation

Answer: C ((₦6,000,000))

Explanation

Working capital = current assets − current liabilities = 5,000,000 − 11,000,000 = −₦6,000,000, shown in brackets.

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Question 16

Business Calculations

Use the information below to answer questions 15 and 16.
Balance Sheet of LMN as at 31/12/2003
Ordinary share capital ₦25,000,000 | Fixed assets ₦26,000,000
Revenue reserve ₦10,000,000 | Investment ₦22,000,000
General reserve ₦3,000,000 | Current assets ₦5,000,000
Long-term liabilities ₦4,000,000 |
Current liabilities ₦11,000,000 |
Total ₦53,000,000 | Total ₦53,000,000

Determine the owner's equity.

  1. A.₦20,000,000
  2. B.₦38,000,000
  3. C.₦42,000,000
  4. D.₦25,000,000
Show the answer and explanation

Answer: B (₦38,000,000)

Explanation

Owners' equity = share capital + reserves = 25,000,000 + 10,000,000 + 3,000,000 = ₦38,000,000.

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