Question 17
Final Accounts of a Sole TraderUse the information below to answer questions 17 and 18 (shown in the figure).
What is the capital employed?
- A.₦44 600
- B.₦43 052
- C.₦38 600
- D.₦43 044
Show the answer and explanation
Answer: D (₦43 044)
Explanation
Taking capital employed as total assets: land 18,470 + furniture 5,120 + motor vehicles 3,462 + stock 3,000 + debtors 11,474 + cash 1,518 = ₦43,044.