Given:Liabilities..............₦23,700 Current assets...........₦20,300 Fixed assets.............₦64,500What is the capital introduced by the proprietor?

Assessment: JAMB UTME - Principles of Accounts - 2005 Subject: Financial Accounting

Question 1 Report

Given:Liabilities..............₦23,700

Current assets...........₦20,300

Fixed assets.............₦64,500What is the capital introduced by the proprietor?

₦40,800

₦61,100

₦88,200

₦108 500

Answer Details

We can use the accounting equation: Assets = Liabilities + Capital We have the values for Liabilities and the total Assets, which is the sum of Current assets and Fixed assets. Assets = Current assets + Fixed assets = ₦20,300 + ₦64,500 = ₦84,800 Now we can rearrange the equation to solve for Capital: Capital = Assets - Liabilities = ₦84,800 - ₦23,700 = ₦61,100 Therefore, the capital introduced by the proprietor is ₦61,100.

Read lesson note on The Final Accounts Of A Sole Trader/proprietorship (WAEC)

Read lesson note on Nature And Significance Of Accounting (JAMB)

The Final Accounts Of A Sole Trader/proprietorship

Nature And Significance Of Accounting

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Given:Liabilities..............₦23,700 Current assets...........₦20,300 Fixed assets.............₦64,500What is the capital introduced by the proprietor?

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