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JAMB Principles of Accounts 2023 Question 31

Question 31

Incomplete Records

Use the information below to answer questions 31 and 32.
(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.₦14,900
  2. B.₦5,700
  3. C.₦9,800
  4. D.₦7,700
Show the answer and explanation

Answer: D (₦7,700)

Explanation

Opening assets = 2,000 + 8,000 + 10,500 = ₦20,500; liabilities = 9,000 + 3,800 = ₦12,800. Capital = 20,500 − 12,800 = ₦7,700.