JAMB Accounts Principles of Accounts 2016 Paper

Concept:The adjusted closing capital is found by updating the opening capital with additional capital, then subtracting drawings and net loss.Explanation:Start with the opening capital of #35,000.Add the additional capital of #10,000.Subtract the net loss of #2,500 because a loss reduces the business wealth.Also subtract drawings of #3,500 because the owner took funds out.So the adjusted capital is:$$\#35{,}000 + \#10{,}000 - \#2{,}500 - \#3{,}500 = \#39{,}000$$Answer:B. #39,000