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JAMB Principles of Accounts 1994 Question 32

Question 32

Partnership Accounts

Ada and Udo are lawyers who went into partnership as Ado and Co. Ada brought cash of ₦12 000, furnishings worth ₦18 000 and a motor vehicle worth ₦70 000. Udo on the other hand brought in cash ₦10 000, his building valued at ₦105 000 and a personal computer worth ₦35 000.
What is the capital of Ado & Co.?

  1. A.₦22 000
  2. B.₦100 000
  3. C.₦150 000
  4. D.₦250 000.
Show the answer and explanation

Answer: D (₦250 000.)

Explanation

Ada: 12 000 + 18 000 + 70 000 = ₦100 000. Udo: 10 000 + 105 000 + 35 000 = ₦150 000. Firm's capital = ₦250 000.