JAMB Accounting 2019 Objective — Question 16

Question 16 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2019 Objective paper, with the correct answer and a full explanation.

Use the information below to answer these questions. Statement of Assets and Liability as at 31/12/2017 (₦m): Shareholders' interest 240; Current liabilities 20; Current assets 110; Fixed assets 140. Determine the value of the trade investment.

A. 8m
B. 10mCorrect
C. 15m
D. 20m

Explanation

Investment (a fictitious/balancing asset here) = (capital + liabilities) − (fixed assets + current assets) = (240+20) − (140+110) = 260−250 = ₦10m.

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