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WAEC Financial Accounting 2002 Question 27

Question 27

Final Accounts of a Sole Trader

Land and buildings N20,000
Stock N5,000
Cash in hand N1,000
Profit and loss b/f N14,000
Rent owing N400
Creditors N11,000
Furniture and fittings N7,500
Motor vehicle N12,500
Debtors N13,750
Bank overdraft N8,750
The value of current liabilities is

  1. A.N32,750
  2. B.N20,150
  3. C.N19,750
  4. D.N11,000.
Show the answer and explanation

Answer: B (N20,150)

Explanation

Rent owing 400 + creditors 11,000 + overdraft 8,750 = N20,150.