Use of following information to answer questions below D Motor vehicle 500000 Stock 35000 Debtors 18000 Cash 12850 Bank overdraft 280000 Creditors 21500 The...
Question 1 Report
Use of following information to answer questions below
| D | |
| Motor vehicle | 500000 |
| Stock | 35000 |
| Debtors | 18000 |
| Cash | 12850 |
| Bank overdraft | 280000 |
| Creditors | 21500 |
The total current liability is
Answer Details
To determine the total current liability, we need to add up all the current liabilities listed in the balance sheet. Current liabilities are the obligations of a business that are expected to be settled within the normal operating cycle of the business, usually one year.
From the given information, we can see that the current liabilities of the business are the bank overdraft and the creditors, which are both listed under the liabilities section of the balance sheet.
Current liabilities = bank overdraft + creditors
Current liabilities = D280,000 + D21,500
Current liabilities = D301,500
Therefore, the total current liability of the business is D301,500. Answer D301,500 is correct.
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