Question 22
Company AccountsUse 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?
- A.₦15,000
- B.₦13,000
- C.₦11,000
- D.₦8,000
- E.₦5,000.
Show the answer and explanation
Answer: B (₦13,000)
Explanation
Stock 8,000 + debtors 5,000 = ₦13,000.