\(\begin{array}{c|c} & N\\ \hline \text{Land and building} & 20,000\\ Stock & 5,000\\ \text{Cash in hand} & 1,000\\ \text{Profit and loss b/f} & 14,000\\ \t...
Question 1 Report
\(\begin{array}{c|c} & N\\ \hline \text{Land and building} & 20,000\\ Stock & 5,000\\ \text{Cash in hand} & 1,000\\ \text{Profit and loss b/f} & 14,000\\ \text{Rent owing} & 400\\ Creditors & 11,000\\ \text{Furniture and fittings} & 7,500\\ \text{Motor vehicle} & 12,000 \\
Debtors & 13,750\\ \text{Bank overdraft} & 8,750
\end{array}\)
The value of current liabilities is
Debtors & 13,750\\ \text{Bank overdraft} & 8,750
\end{array}\)
The value of current liabilities is
Answer Details
To determine the value of current liabilities, we need to identify the liabilities that are due for payment within the next 12 months.
From the given information, the following items are considered as current liabilities:
- Rent owing: N400
- Creditors: N11,000
- Bank overdraft: N8,750
Therefore, the total current liabilities are: N400 + N11,000 + N8,750 = N20,150
Hence, the answer is N20,150.
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