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JAMB Principles of Accounts 2008 Question 8

Question 8

Final Accounts of a Sole Trader

Use the information below:
I. Cash at bank
II. Cash in hand
III. Premises
IV. Land
V. Creditors
VI. Loan from friends/bank
What are the current assets?

  1. A.I and II
  2. B.I and V
  3. C.II and IV
  4. D.III and V
Show the answer and explanation

Answer: A (I and II)

Explanation

Cash at bank and cash in hand are current assets; creditors and loans are liabilities.