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?

  • A N12 240
  • B N12 115
  • C N2 510
  • D N2 150
jamb 2005accounting

The correct answer is A. N12 240

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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