Question on: JAMB Accounting - 2022
Given:
Capital ...........N1000
Liabilities........N500
Assets.............N1500
The accounting equation can be expressed as?
A
N1000 + N500 + N1500 = N3000
B
N1000 - N500 + N1500 = N2000
C
N1000 + N500 = N1500
D
N1500 + N500 = N2000
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Correct Option: C
The accounting equation represents the fundamental principle of accounting, which states that the total assets of a business are equal to the total liabilities and owner's equity. In this case:
Total assets (N1500) = Total liabilities (N500) + Owner's equity (N1000)
So, N1000 (Owner's equity) + N500 (Liabilities) = N1500 (Assets), which is expressed as Option C.
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