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JAMB Principles of Accounts 2007 Question 37

Question 37

Accounting Equation

Net loss ₦2 300
Capital ₦10 500
Liabilities ₦7 200
Find the value of the total assets?

  1. A.₦17 700
  2. B.₦10 500
  3. C.₦20 000
  4. D.₦15 400.
Show the answer and explanation

Answer: D (₦15 400.)

Explanation

Owner's equity = 10 500 − 2 300 loss = ₦8 200. Assets = equity + liabilities = 8 200 + 7 200 = ₦15 400.