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JAMB Principles of Accounts 2007 Question 31

Question 31

Incomplete Records

1/7/2005: Drawings –; Capital ₦25 000; Furniture and fittings ₦6 500
30/6/2006: Drawings ₦3 000; Capital ₦42 500; Furniture and fittings ₦10 200
Additional capital during the year amounts to 300% of the drawings.
What is the amount of the additional capital?

  1. A.₦900
  2. B.₦900 000
  3. C.₦90 000
  4. D.₦9 000.
Show the answer and explanation

Answer: D (₦9 000.)

Explanation

300% of drawings = 3 × 3 000 = ₦9 000.