JAMB Accounting 2009 Objective — Question 40

Question 40 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2009 Objective paper, with the correct answer and a full explanation.

40. Capital balances b/d: P #20,000, K #10,000. Drawings: P #2,000, K #1,000. Share of profits: P #4,000, K #2,000. Salary: P #1,000. Interest on drawings: P #100, K #20. Assuming the partnership maintains a fixed capital, what is P's closing capital?

A. #25,000
B. #24,900
C. #22,900
D. #20,000Correct

Explanation

Under a fixed capital arrangement, the capital account balance never changes; P's closing capital remains #20,000 (all profit/salary/drawings entries pass through the current account).

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