WAEC Financial Accounting 1993 Question 22

Question 22

Company Accounts

Use the following information:
10,000 ordinary shares of ₦1 each: ₦10,000
5,000 5% preference shares of ₦1 each: ₦5,000
Profit and Loss Account: ₦8,000
8% debenture: ₦10,000
Creditors: ₦3,000
Bank overdraft: ₦2,000
Plants and machinery: ₦10,000
Furniture and fittings: ₦3,000
Stock: ₦8,000
Debtors: ₦5,000

What is the total of current assets?

  1. A.₦15,000
  2. B.₦13,000
  3. C.₦11,000
  4. D.₦8,000
  5. E.₦5,000.
Show the answer and explanation

Answer: B (₦13,000)

Explanation

Stock 8,000 + debtors 5,000 = ₦13,000.