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WAEC Financial Accounting 1998 Question 17

Question 17

Final Accounts of a Sole Trader

Furniture and Fittings: N15,000
Land and Buildings: N40,000
Motor Vehicles: N25,000
Stock: N10,000
Debtors: N27,500
Cash in hand: N2,000
Bank overdraft: N17,500
Profit and Loss b/d: N28,000
Rent owing: N800
Sundry creditors: N22,000
The value of current assets is

  1. A.N68,300
  2. B.N57,000
  3. C.N40,300
  4. D.N39,500
  5. E.N34,000.
Show the answer and explanation

Answer: D (N39,500)

Explanation

Current assets = stock 10,000 + debtors 27,500 + cash 2,000 = N39,500.