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JAMB Principles of Accounts 2003 Question 10

Question 10

Accounting Equation

Given:
Capital ₦1 000
Liabilities ₦500
Assets ₦1 500
The accounting equation can be expressed as

  1. A.₦1 000 + ₦500 + ₦1 500 = ₦3 000
  2. B.₦1 000 − ₦500 + ₦1 500 = ₦2 000
  3. C.₦1 000 + ₦500 = ₦1 500
  4. D.₦1 500 + ₦500 = ₦2 000
Show the answer and explanation

Answer: C (₦1 000 + ₦500 = ₦1 500)

Explanation

Capital + Liabilities = Assets: ₦1 000 + ₦500 = ₦1 500.