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JAMB Principles of Accounts 2002 Question 13

Question 13

Final Accounts of a Sole Trader

Use the information below to answer questions 12 and 13.
Statement of Assets and Liabilities as at 31st December, 2001. (₦m)
Shareholders' interest 240
Current liabilities 20
Current assets 110
Fixed assets 140
Determine the value of the trade investment

  1. A.₦8m
  2. B.₦10m
  3. C.₦15m
  4. D.₦20m.
Show the answer and explanation

Answer: B (₦10m)

Explanation

Total claims = 240 + 20 = 260. Assets listed = 110 + 140 = 250. The missing asset, trade investment, = ₦10m.