The records of Superstores shows a loan of #14,000 from Bala,creditor #8,000 and assets #190,500. What is the firm's capital?

Assessment: JAMB UTME - Principles of Accounts - 2016 Subject: Financial Accounting

Question 1 Report

The records of Superstores shows a loan of #14,000 from Bala,creditor #8,000 and assets #190,500. What is the firm's capital?
Answer Details
The capital of a company represents the amount of money that is available to the owners or shareholders of the company after all debts and liabilities have been paid off. To calculate the capital of Superstores, we need to subtract the total liabilities from the total assets. The total liabilities of Superstores are the loan from Bala and the creditor, which add up to #14,000 + #8,000 = #22,000. Therefore, the capital of Superstores is #190,500 - #22,000 = #168,500. So the correct answer is option D: #168,500.
Read lesson note on The Accounting Equation And Double Entry Principle (WAEC)
Read lesson note on Principles Of Double Entry (JAMB)
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