JAMB Accounting 2013 Objective — Question 20

Question 20 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2013 Objective paper, with the correct answer and a full explanation.

Use the information below to answer questions 20 and 21. 1/1/2010 to 31/12/2010 (figures in ₦, as at 1/1/2010 and 31/12/2010) Creditors: 9,000 / 9,800 Rent owing: 3,800 / 2,500 Rates prepaid: 2,000 / 3,500 Motor van: 8,000 / 8,000 Premises: 10,500 / 10,500 Find the opening capital.

A. ₦5,700
B. ₦7,700Correct
C. ₦9,800
D. ₦14,900

Explanation

Opening capital = Opening assets − Opening liabilities = ₦(2,000+8,000+10,500) − ₦(9,000+3,800) = ₦20,500 − ₦12,800 = ₦7,700.

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