Emeka Enterprise presented the following financial balances at the end of its accounting y… — JAMB UTME

Emeka Enterprise presented the following financial balances at the end of its accounting year:

- Equipment and Motor Vehicles: $\text{₦}1,400,000$
- Inventory: $\text{₦}350,000$
- Trade Debtors: $\text{₦}180,000$
- Cash at Bank: $\text{₦}120,000$
- Trade Creditors: $\text{₦}220,000$
- Accrued Expenses: $\text{₦}80,000$
- 10% Long-term Debentures: $\text{₦}500,000$

What is the value of the enterprise's Capital Owned?

$\text{₦}1,250,000$ Cevap
B
$\text{₦}1,550,000$
C
$\text{₦}1,750,000$
D
$\text{₦}2,050,000$

Cevap

The correct Capital Owned is

\text{₦}1,250,000

The correct answer derives from calculating Total Assets (

\text{₦}2,050,000

) minus Total Liabilities (

\text{₦}800,000

), yielding

\text{₦}1,250,000

as the net capital belonging to the owner.

Adım Adım Çözüm

Calculate Total Assets

Total Assets = Fixed Assets + Current Assets =

\text{₦}1,400,000 + (\text{₦}350,000 + \text{₦}180,000 + \text{₦}120,000) = \text{₦}2,050,000

Total assets comprise all fixed assets and current assets owned by the enterprise.

Calculate Total Liabilities

Total Liabilities = Current Liabilities + Long-term Liabilities = (

\text{₦}220,000 + \text{₦}80,000

) +

\text{₦}500,000 = \text{₦}800,000

Total liabilities combine short-term obligations (creditors and accrued expenses) and long-term debt (debentures).

Compute Capital Owned

Capital Owned = Total Assets - Total Liabilities =

\text{₦}2,050,000 - \text{₦}800,000 = \text{₦}1,250,000

Capital Owned (Net Assets / Owner's Equity) represents the net worth remaining after deducting all external obligations from total assets.

Anahtar Kavram

Capital Owned (Net Worth / Owner's Equity)

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