Use the information below to answer questions Total current assets..................N2,000 Total fixed assets....................N4,000 Current liabilities...................N1,200...
FINANCIAL
JAMB 2009
Use the information below to answer questions
Total current assets..................N2,000
Total fixed assets....................N4,000
Current liabilities...................N1,200
Drawings..............................N200
Long-term loan........................N2,000
Determine the capital of the business?
- A. N9,400
- B. N6,000
- C. N3,400
- D. N3,000
Correct Answer: D. N3,000
Explanation
Capital = Assets - liabilities
Assets = Fixed assets + current assets + drawings
2000 + 4000 + 200 = 6200
Liabilities = current liabilities + longterm loans
1200 + 2000 = 3200
6200 - 3200 = 3000
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