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WAEC Financial Accounting 1996 Question 18

Question 18

Final Accounts of a Sole Trader

Fixed assets: N12,000
Current assets: N5,000
Current liabilities: N2,300
Capital: N10,000
Long term liabilities: N4,700
What is the total net assets?

  1. A.N17,300
  2. B.N17,000
  3. C.N15,000
  4. D.N14,700
  5. E.N12,000
Show the answer and explanation

Answer: D (N14,700)

Explanation

Net assets = total assets − current liabilities = N17,000 − N2,300 = N14,700 (equal to capital + long-term liabilities).