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JAMB Accounting 2008 Objective — Question 26

Question 26 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2008 Objective paper, with the correct answer and a full explanation.

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Use the information below to answer questions 26 and 27: Total fixed assets 31 Dec. 05: 7,800, 31 Dec. 06: 6,600; Total current assets 12,100, 17,800; Total current liabilities 4,700, 3,800; Drawings for 2006 is 5,200. Determine the capital balance as at Dec. 31 2005

  • A. 20 60
  • B. 15 200Correct
  • C. 13 800
  • D. 11 600

Explanation

Capital = Assets - Liabilities = N(7,800+12,100)-N4,700 = N19,900-N4,700 = N15,200.

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