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JAMB Principles of Accounts 2013 Question 21

Question 21

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
Calculate the value of closing capital.

  1. A.₦8,700.
  2. B.₦9,500.
  3. C.₦9,700
  4. D.₦10,700.
Show the answer and explanation

Answer: C (₦9,700)

Explanation

Assets 3 500 + 8 000 + 10 500 = 22 000; liabilities 9 800 + 2 500 = 12 300. Capital = ₦9 700.