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WAEC Financial Accounting 2026 Question 5

Question 5

Accounting Equation

A trader sets aside N27,000 from her private funds for business purposes. The N27,000 is

  1. A.a loan
  2. B.profit
  3. C.capital
  4. D.drawings
Show the answer and explanation

Answer: C (capital)

Explanation

Money the owner puts into the business from private funds is capital.