JAMB Accounts Principles of Accounts 2020 Paper

Concept:The owner’s capital is calculated from the accounting equation while adjusting for drawings.Explanation:Total assets = $\text{₦}2,000 + \text{₦}4,000 = \text{₦}6,000$.Total liabilities = $\text{₦}1,200 + \text{₦}2,000 = \text{₦}3,200$.Since drawings reduce capital, they are added back to the net assets figure.Use: $\text{Capital} = \text{Total Assets} + \text{Drawings} - \text{Total Liabilities}$Thus, Capital = $\text{₦}6,000 + \text{₦}200 - \text{₦}3,200 = \text{₦}3,000$.Therefore, the required capital is ₦3,000.Answer:₦3,000 (Option A).