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JAMB Principles of Accounts 2009 Question 18

Question 18

Interpretation of Accounts

Total current assets ₦2,000
Total fixed assets ₦4,000
Current liabilities ₦1,200
Drawings ₦200
Long-term loan ₦2,000
What is the net working capital?

  1. A.₦2,600
  2. B.₦1,800
  3. C.₦800
  4. D.₦600
Show the answer and explanation

Answer: C (₦800)

Explanation

Working capital = current assets 2 000 − current liabilities 1 200 = ₦800.