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JAMB Principles of Accounts 2003 Question 37

Question 37

Incomplete Records

Emeka Enterprises Statement of Affairs at start
Assets (₦): Cash 70 000; Inventory 58 000; Machines 100 000
Liabilities (₦): Creditors 85 000; Bank Loan 60 000
What is the capital at start?

  1. A.₦53 000
  2. B.₦63 000
  3. C.₦73 000
  4. D.₦83 000
Show the answer and explanation

Answer: D (₦83 000)

Explanation

Capital = assets 228 000 − liabilities 145 000 = ₦83 000.