Question 18
Final Accounts of a Sole TraderUse the following information:
Goodwill: Dr ₦10,000
Plant and Machinery: Dr ₦32,000
Freehold premises: Dr ₦50,000
Stock: Dr ₦15,000
Debtors: Dr ₦12,500
Cash in bank: Dr ₦7,500
Cash in hand: Dr ₦2,000
Profit and Loss Account: Cr ₦34,000
Accrued rent: Cr ₦500
Sundry creditors: Cr ₦9,500
Capital: Cr (figure not given)
Totals: ₦129,000, ₦129,000
What is the value of intangible assets?
- A.₦60,000
- B.₦50,000
- C.₦42,000
- D.₦32,000
- E.₦10,000.
Show the answer and explanation
Answer: E (₦10,000.)
Explanation
The only intangible asset is goodwill, ₦10,000.