Danladi Bako’s Statement of Affairs as at 30/06/17₦₦Capital??Fixtures and fittings4,000Stock20,500Sundry…

JAMB Accounting 2023 60 views

Danladi Bako’s Statement of Affairs as at 30/06/17

₦ ₦
Capital ?? Fixtures and fittings 4,000
Stock 20,500
Sundry debtors 40,000
Creditors 18,000 Bank ??
78,650 78,650

What is the value of Dalandi Bako’s capital?

Danladi Bako’s Statement of Affairs as at 30/06/17

₦ ₦
Capital ?? Fixtures and fittings 4,000
Stock 20,500
Sundry debtors 40,000
Creditors 18,000 Bank ??
78,650 78,650

What is the value of Dalandi Bako’s capital?

  1. ₦78,650
  2. ₦60,650 ✓
  3. ₦60,150
  4. ₦50,160

Explanation

Capital = Total liabilities and capital – Creditors. From the balance sheet, total = ₦78,650. Creditors = ₦18,000. Therefore, Capital = ₦78,650 – ₦18,000 = ₦60,650.

Alternatively: Capital = Total assets – Total liabilities = ₦78,650 – ₦18,000 = ₦60,650. Both methods give the same answer.

Formula: Assets = Capital + Liabilities, so Capital = Assets – Liabilities.

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