Paper 2 · June 2023 · Final Accounts

M. Mekia's assets on 1 April 2016 were: Bank $3 500, Inventory $6 600, Motor vehicles $16 000, Trade receivables $14 200, General expenses prepaid $100. Liabilities were: Trade payables $4 200, Loan $10 000, Rent accrued $400. Calculate the capital on 1 April 2016.

Model answer

$25 800

Also accepted: 25800, 25 800

Explanation

Total assets = 3 500+6 600+16 000+14 200+100 = 40 400. Total liabilities = 4 200+10 000+400 = 14 600. Capital = assets minus liabilities = 40 400-14 600 = $25 800.

Derived from ZIMSEC Principles of Accounting 4051/2 Paper 2, June 2023, Q1

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More questions from this paper

On 1 April 2016 M. Mekia's Bank balance was $3 500, Inventory $6 600, Motor vehicles $16 000, Trade receivables $14 200 and General expenses prepaid $100. Calculate the total assets on that date.
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