passwella.
Menu

JAMB Principles of Accounts 2012 Question 27

Question 27

Accounting Equation

Given:
Fixtures ₦30,000
Debtors ₦7,000
Stock ₦8,000
Creditors ₦3,000
Goodwill ₦10,000
Determine the capital.

  1. A.₦10,000
  2. B.₦42,000
  3. C.₦45,000
  4. D.₦52,000.
Show the answer and explanation

Answer: D (₦52,000.)

Explanation

Assets = 30 000 + 7 000 + 8 000 + 10 000 = 55 000. Capital = 55 000 − creditors 3 000 = ₦52 000.