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JAMB Principles of Accounts 2005 Question 24

Question 24

Accounting Equation

If the assets and liabilities of a firm were valued at ₦17 200 and ₦5 120 respectively, the capital of the firm would be

  1. A.₦22 320
  2. B.₦17 200
  3. C.₦12 080
  4. D.₦5 120
Show the answer and explanation

Answer: C (₦12 080)

Explanation

Capital = assets − liabilities = 17 200 − 5 120 = ₦12 080.