WAEC Financial Accounting 2001 Question 20

John Udoh started business on 1st January, 1998 with the following assets: Motor Van N120,000; Buildings N300,000; Stock of goods N40,000
In addition, he had cash of N60,000, out of which N20,000 was borrowed from a friend.
The liabilities of the business amount to

1. A.N80,000
2. B.N60,000
3. C.N40,000
4. D.N20,000