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JAMB Principles of Accounts 2001 Question 4

Question 4

Accounting Equation

If liabilities amounted to ₦12,045, other assets ₦36,800 and equity ₦26,896, the cash at hand would be

  1. A.₦2,241
  2. B.₦2,214
  3. C.₦2,141
  4. D.₦2,114.
Show the answer and explanation

Answer: C (₦2,141)

Explanation

Total assets = liabilities + equity = 12,045 + 26,896 = 38,941. Cash = 38,941 − 36,800 = ₦2,141.