JAMB Principles of Accounts 2001 Question 23

Question 23

Incomplete Records

Use the information below to answer questions 22 and 23.
Given: (31/12/98 ₦; 31/12/99 ₦)
Assets: Plant & Mach. 1,500; 1,200
Fixtures 700; 520
Stock 500; 600
Debtors 900; 400
Cash 200; 300
Liabilities: Creditors 500; 600
Loan 600; 400
What is the capital from the opening balance sheet?

A.₦3,600
B.₦2,700
C.₦2,070
D.₦1,520.

Show the answer and explanation

Answer: B (₦2,700)

Explanation

Assets = 1,500 + 700 + 500 + 900 + 200 = 3,800. Liabilities = 500 + 600 = 1,100. Capital = ₦2,700.