JAMB Accounting Past Questions & Answers - Page 125

621.

Given:

Drawings - #3,500
Net loss - #2,500
Capital 1/1/2007 - #35,000
Additional capital - #10,000

The adjusted capital as at 31/1/2007 is

A.

#35,000

B.

#39,000

C.

#45,000

D.

#46,000

Correct answer is B

Adjusted capital=

capital + additional capital - net loss - drawings

35,000 +10,000 -3500 -2500 = 39,000

 

622.

The estimated profit or loss for a period is calculated by

A.

Closing capital less opening capital add drawings

B.

Opening capital less closing capital add drawings

C.

Opening capital less drawings add closing capital

D.

Opening capital add closing add drawings

Correct answer is A

No explanation has been provided for this answer.

623.

Given:
Opening capital - #50,000
Closing capital - #64,000
Drawings - #16,000

Determine the net profit.

A.

#2,000

B.

#14,000

C.

#20,000

D.

#30,000

Correct answer is D

closing capital - opening capital  + drawings

64,000 - 50,000 - 16,000 = 30,000