WAEC Accounting 2012 Paper

Concept:Capital is the owner’s claim in the business, so it is equal to total assets minus total external liabilities.Explanation:The assets given are cash in hand, cash at bank, stock, and furniture and fittings.Cash in hand $= \mathrm{D}1,440$Cash at bank $= \mathrm{D}2,440$Stock $= \mathrm{D}2,500$Furniture and fittings $= \mathrm{D}2,200$Total assets $= 1,440 + 2,440 + 2,500 + 2,200$Total assets $= \mathrm{D}8,580$Creditors are an external liability of $\mathrm{D}1,000$.Using: $\text{Capital} = \text{Total assets} - \text{Liabilities}$:Capital $= 8,580 - 1,000$Capital $= \mathrm{D}7,580$So, with the figures as written, the correct amount is not listed among the options.Answer:$\mathrm{D}7,580$ (not listed in the options).