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WAEC Accounting 2015 Paper

Question : 28

Total: 50

\begin{array}{c|cc} & 1/7/10 & 30/6/11 \\ & D & D \\ \hline \text{Stock} & 1,460 & 4,200 \\ \hline \text{Motor Car} & 3,600 & 3,200 \\ \hline \text{Creditors} & 600 & 700 \end{array}

Closing capital is

Solution:

Concept:

Closing capital is the net value of the business on the closing date, found by subtracting total liabilities from total assets.

Explanation:

The closing date is 30/6/11.

Assets on this date: Stock =

\mathrm{D}4{,}200

and Motor Car =

\mathrm{D}3{,}200

Total assets =

4{,}200 + 3{,}200 = \mathrm{D}7{,}400

Liabilities on this date: Creditors =

\mathrm{D}700

Closing capital = Total assets − Total liabilities.

Closing capital =

\mathrm{D}7{,}400 - \mathrm{D}700 = \mathrm{D}6{,}700

Answer:

\mathrm{D}6{,}700

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