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WAEC Financial Accounting 1998 Question 19

Question 19

Final Accounts of a Sole Trader

Furniture and Fittings: N15,000
Land and Buildings: N40,000
Motor Vehicles: N25,000
Stock: N10,000
Debtors: N27,500
Cash in hand: N2,000
Bank overdraft: N17,500
Profit and Loss b/d: N28,000
Rent owing: N800
Sundry creditors: N22,000
The opening capital is

  1. A.N52,000
  2. B.N51,200
  3. C.N48,300
  4. D.N39,500
  5. E.N28,000.
Show the answer and explanation

Answer: B (N51,200)

Explanation

Net assets = 80,000 + 39,500 − 40,300 = 79,200; less profit 28,000 = opening capital N51,200.