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WAEC Financial Accounting 1996 Question 19

Question 19

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
Total liabilities amount to

  1. A.N17,000
  2. B.N14,700
  3. C.N12,300
  4. D.N7,000
  5. E.N4,700
Show the answer and explanation

Answer: D (N7,000)

Explanation

Total liabilities = current liabilities + long-term liabilities = N2,300 + N4,700 = N7,000.