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JAMB Principles of Accounts 2013 Question 20

Question 20

Incomplete Records

Item | 1/1/2010 (₦) | 31/12/2010 (₦)
Creditors | 9,000 | 9,800
Rent owing | 3,800 | 2,500
Rates prepaid | 2,000 | 3,500
Motor van | 8,000 | 8,000
Premises | 10,500 | 10,500
Find the opening capital.

  1. A.₦5,700.
  2. B.₦7,700.
  3. C.₦9,800.
  4. D.₦14,900.
Show the answer and explanation

Answer: B (₦7,700.)

Explanation

Assets 2 000 + 8 000 + 10 500 = 20 500; liabilities 9 000 + 3 800 = 12 800. Capital = ₦7 700.