JAMB - Accounts Principles Of Accounts (2005 - No. 22)
Use the information below to answer questions
Zazzau Company:
Cash in hand................N50
Cash in bank................N1 250
Stock.......................N4 880
Furniture...................N9 60
Building....................N5 500
Debtor......................N1 750
Creditors...................N2 150
Drawings of N125 were made by the shareholders of the company.
The capital of the company stands at?
N12 240
N12 115
N2 510
N2 150
Explanation
Capital means the assets and cash in a business. It may either be cash, machinery, receivable accounts, property, or houses.
50 + 4880+ 1750 + 1250 + 960+ 5500 = 14390
14390 - 2150 = 12240
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