Test Index

JAMB Commerce 2019 Paper

Question : 7

Total: 82

Solution:

Concept:

The balance sheet must obey the accounting equation:

\text{Assets} = \text{Capital} + \text{Liabilities}

Explanation:

Rearrange the accounting equation to find liabilities:

\text{Liabilities} = \text{Assets} - \text{Capital}

Add all the asset values in the summary:

4900 + 1600 + 100 = 6600

The owner’s capital from the summary is

6000

So, liabilities

= 6600 - 6000

= 600

Answer:

The liabilities of Ojo trading company are

₦600

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