Question 26
Incomplete Records31 Dec. 05: Total fixed assets ₦7 800; Total current assets ₦12 100; Total current liabilities ₦4 700
31 Dec. 06: Total fixed assets ₦6 600; Total current assets ₦17 800; Total current liabilities ₦3 800
Drawings for 2006 is N5 200
Determine the capital balances as at Dec. 31, 2005
- A.N20 600
- B.N15 200
- C.N13 800
- D.N11 600
Show the answer and explanation
Answer: B (N15 200)
Explanation
Capital = assets − liabilities = 7 800 + 12 100 − 4 700 = ₦15 200.