Accounting JAMB

Determine the net current assets?

Given:

Authorized Capital: N
100,000 ordinary shares of N 1 cash
Issued and fully paid:
50,000 ordinary shares of N 1 each 50,000
10, 000 8% preference shares
of N 1 each
Reserves 10,000
Creditors 25,000
Debtors 13 000
Cash in hand 5000

A. N 43,000
B. N 28,000
C. N13,000
D. N3,000

Correct Answer:

Option D – N3,000

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