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WAEC Financial Accounting 2024 Question 16

Question 16

Incomplete Records

In an incomplete record, the excess of opening capital over closing capital is

  1. A.provision.
  2. B.loss.
  3. C.profit.
  4. D.reserve.
Show the answer and explanation

Answer: B (loss.)

Explanation

If capital falls (with no drawings or new capital), the business made a loss.