Question 35
Interpretation of AccountsUCHENNA ENTERPRISES – Balance Sheet as at 31st December, 1993
Capital N84,000; add net profit N15,000 = N99,000; less drawings N9,000 = N90,000
Creditors N25,000
Accruals N15,000
Total N130,000
Land and Building N45,000
Furniture and Fittings N34,000
Stock N28,000
Debtors N22,000
Cash N1,000
Total N130,000
Working capital amounts to
- A.N51,000
- B.N50,000
- C.N23,000
- D.N22,000
- E.N11,000.
Show the answer and explanation
Answer: E (N11,000.)
Explanation
Working capital = current assets N51,000 − current liabilities (N25,000 + N15,000) = N11,000.