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JAMB Principles of Accounts 2014 Question 21

Question 21

Final Accounts of a Sole Trader

Balance Sheet (Extract)
Creditors ₦7,940
Prepaid expenses ₦290
Accrual expenses ₦323
Stock ₦4,500
Cash balances ₦4,956
Debtors ₦905
Determine the current liabilities.

  1. A.₦8,553.
  2. B.₦8,263.
  3. C.₦7,940.
  4. D.₦1,228.
Show the answer and explanation

Answer: B (₦8,263.)

Explanation

Creditors 7 940 + accrued expenses 323 = ₦8 263.