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WAEC Financial Accounting 1995 Question 13

Question 13

Interpretation of Accounts

Use the following information:
Sales: ₦45,000
Opening stock: ₦20,000
Closing stock: ₦30,000
Expenses: ₦15,000
Fixed Assets: ₦40,000
Debtors: ₦10,000
Creditors: ₦5,000
Purchases: ₦25,000

Working capital is

  1. A.₦60,000
  2. B.₦45,000
  3. C.₦40,000
  4. D.₦35,000
  5. E.₦20,000
Show the answer and explanation

Answer: D (₦35,000)

Explanation

40,000 − 5,000 = ₦35,000.