Question 9
Final Accounts of a Sole TraderUse the information below to answer questions 9 and 10.
The Assets and Liabilities of Udo Co. Ltd. as at 31st December, 2000. (₦)
Creditors 50000
Debtors 46000
Loan 100000
Stock 20000
Motor vehicle 120000
Building 70000
Accrued wages 30000
Bank 25000
The value of capital invested by the owners is
- A.₦110,000
- B.₦105,000
- C.₦101,000
- D.₦100,000.
Show the answer and explanation
Answer: C (₦101,000)
Explanation
Assets = 46 000 + 20 000 + 120 000 + 70 000 + 25 000 = 281 000. Liabilities = 50 000 + 100 000 + 30 000 = 180 000. Capital = ₦101 000.