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JAMB Principles of Accounts 2023 Question 32

Question 32

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
Calculate the value of closing capital.

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

Answer: B (₦9,700)

Explanation

Closing assets = 3,500 + 8,000 + 10,500 = ₦22,000; liabilities = 9,800 + 2,500 = ₦12,300. Capital = 22,000 − 12,300 = ₦9,700.