Given: Authorized Capital: N 100,000 ordinary shares of ₦1 eash Issued and fully paid: 50,000 ordinary shares of ₦1 each 50,000 10, 000 8% perference shares...

Given:

Authorized Capital: N

100,000 ordinary shares of ₦1 eash

Issued and fully paid:

50,000 ordinary shares of ₦1 each 50,000

10, 000 8% perference shares

Of ₦1 each

Reserves 10,000

Creditors 25,000

Debtors 13 000

Cash in hand 5000

Determine the net current assets

Answer Details

To determine the net current assets, we need to find the current assets and current liabilities of the company and then subtract the current liabilities from current assets. Current Assets = Debtors + Cash in Hand = ₦13,000 + ₦5,000 = ₦18,000 Current Liabilities = Creditors = ₦25,000 Net Current Assets = Current Assets - Current Liabilities = ₦18,000 - ₦25,000 = -₦7,000 Since the result is negative, it means the company has a deficit in net current assets, which implies that the company may face difficulties in meeting its short-term obligations. Therefore, the correct option is ₦3,000 (None of the above).