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JAMB Principles of Accounts 1997 Question 26

Question 26

Incomplete Records

Given:
Capital at the beginning ₦20 000
Drawings ₦3 000
Capital at end ₦30 000
New capital introduced ₦8 000
What is the profit for the period?

  1. A.₦4 000
  2. B.₦5 000
  3. C.₦6 000
  4. D.₦8 000.
Show the answer and explanation

Answer: B (₦5 000)

Explanation

Profit = 30 000 − 20 000 + drawings 3 000 − new capital 8 000 = ₦5 000.