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WAEC Commerce 1997 Question 84

Question 84

Business Calculations

The total assets of Ogo Plc is N16,000 and the liabilities included loan N2,000, creditors N1,000 and electricity bill N2,000. Calculate the capital owned by the company

  1. A.N21,000.00
  2. B.N18,000.00
  3. C.N17,000.00
  4. D.N16,000.00
  5. E.N11,000.00
Show the answer and explanation

Answer: E (N11,000.00)

Explanation

Capital owned = assets − liabilities = N16,000 − (N2,000 + N1,000 + N2,000) = N11,000.