Question 15
Final Accounts of a Sole TraderUse the information below to answer questions 15 and 16.
(₦ Dr; ₦ Cr)
Capital — ; 24 000
Land and building 18 470
Mortgage on premises — ; 11 090
Drawings 3 000
Profit and loss — ; 3 600
Furniture and fittings 5 120
Motor Vehicles 3 462
Closing Stock 3 000
Debtors 11 474
Creditors — ; 7 354
Cash 1 518
Totals 46 044 ; 46 044
What is the capital employed?
- A.₦44 600
- B.₦43 052
- C.₦43 044
- D.₦38 600
Show the answer and explanation
Answer: C (₦43 044)
Explanation
Here capital employed is taken as total assets: 18 470 + 5 120 + 3 462 + 3 000 + 11 474 + 1 518 = ₦43 044.