JAMB Accounts Principles of Accounts 2013 Paper

Concept:Closing capital is found by adding all increases to capital and subtracting drawings.Explanation:Start with the opening capital.Add additional capital introduced during the year.Add the profit earned.Subtract the cash drawings taken by the owner.Closing capital = Opening capital + Capital introduced + Profit − Drawings$$= \#1,500 + \#500 + \#800 - \#250$$$$= \#2,550$$Answer:A. #2,550