What is the amount of capital employed - JAMB Accounting 2018 Question

Capital employed is calculated as:

• Capital Employed = Fixed Assets + Current Assets - Current Liabilities

From the image:

• Fixed Assets = ₦15,000
• Current Assets = ₦12,000
• Current Liabilities = ₦12,000 - ₦7,000 = ₦5,000

Therefore, Capital Employed = ₦15,000 + ₦12,000 - ₦12,000 + ₦7,000 = ₦15,000