Question 2
Accounting EquationUse the following information to answer questions 2 and 3
Years — Current Assets (₦) — Liabilities (₦) — Fixed Assets (₦) — Capital (₦)
2018 — 52,550 — 78,600 — 127,450 — X
2017 — 41,650 — 53,220 — Y — 116,780
The letter X represents
- A.₦258,600
- B.₦180,000
- C.₦101,400
- D.₦78,600
Show the answer and explanation
Answer: C (₦101,400)
Explanation
Capital = assets − liabilities = 52,550 + 127,450 − 78,600 = ₦101,400.