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WAEC Commerce 2006 Question 12

Question 12

Business Calculations

Use the following information: The following information relates to Mallam Amidu Kachella for the year ended 31/12/2005 (₦): Opening stock 4,000; Purchases 16,000; Sales 30,000; Debtors 6,500; Creditors 4,200; Cash in hand 800; Closing stock 5,600; Bank overdraft 3,000.
The current liability is

  1. A.₦1,200
  2. B.₦3,000
  3. C.₦4,200
  4. D.₦7,200
Show the answer and explanation

Answer: D (₦7,200)

Explanation

Current liabilities = creditors 4,200 + bank overdraft 3,000 = ₦7,200.