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JAMB Principles of Accounts 2002 Question 32

Question 32

Not-for-Profit Organisations

A.S.D. Club Balance Sheet (Extract)
Accumulated fund ₦6,000; Add surplus income ₦1,000: ₦7,000
Creditors for supplies ₦1,000
Subscriptions advance ₦2,000
Total ₦10,000
Motor van ₦4,000
Stock ₦3,500
Debtors for subscriptions ₦1,000
Bank ₦1,500
Total ₦10,000
The working capital of the club is

  1. A.₦5000
  2. B.₦4000
  3. C.₦3000
  4. D.₦7000.
Show the answer and explanation

Answer: C (₦3000)

Explanation

Current assets = 3 500 + 1 000 + 1 500 = 6 000. Current liabilities = 1 000 + 2 000 = 3 000. Working capital = ₦3 000.