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JAMB Principles of Accounts 2007 Question 38

Question 38

Accounting Equation

Net loss ₦2 300
Capital ₦10 500
Liabilities ₦7 200
What will be the equity of the business?

  1. A.₦12 800
  2. B.₦4 900
  3. C.₦8 200
  4. D.₦9 500.
Show the answer and explanation

Answer: C (₦8 200)

Explanation

The net loss reduces capital: 10 500 − 2 300 = ₦8 200.