Test Index

WAEC Accounting 2015 Paper

Question : 27

Total: 50

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

Opening capital is

Solution:

Concept:

Opening capital is the excess of assets over liabilities on the opening date.

Explanation:

Use the statement of affairs as at 1/7/10.

Total assets

= 1{,}460 + 3{,}600 = 5{,}060

Liabilities (creditors)

= 600

Opening capital

= 5{,}060 - 600 = 4{,}460

The drawings of

1{,}500

affect closing capital, not opening capital, so they are ignored here.

Answer:

\mathrm{D}\,4{,}460

, i.e. Option C.

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