passwella.
Menu

WAEC Financial Accounting 1998 Question 18

Question 18

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 liabilities is

  1. A.N65,500
  2. B.N40,300
  3. C.N39,500
  4. D.N28,000
  5. E.N22,000.
Show the answer and explanation

Answer: B (N40,300)

Explanation

Current liabilities = overdraft 17,500 + rent owing 800 + creditors 22,000 = N40,300.