T. Trader sets aside from his private funds n1,500 for business purposes. The N1.500 would be referred to as

Assessment: WAEC SSCE - Financial Accounting - 1989 (Objective) Subject: Financial Accounting

Question 1 Report

T. Trader sets aside from his private funds n1,500 for business purposes. The N1.500 would be referred to as
Answer Details
The N1,500 set aside by T. Trader from his private funds for business purposes is referred to as "capital". Capital represents the amount of money or assets that an owner has invested in a business. It can be in the form of cash or other assets contributed by the owner to start or grow the business. In this case, T. Trader is contributing his own funds to the business, which increases the capital of the business.
Read lesson note on Nature And Significance Of Accounting (JAMB)
Read lesson note on Provisions And Reserves (WAEC)
Read lesson note on Principles Of Double Entry (JAMB)
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