From the below, calculate Current liabilities.

The following is a summary of the asset and liabilities of Ojo trading company as at 31st December, 2018

A. 100
B. 6000
C. 600
D. 3000

Correct Answer: Option C

C. 600

Explanation

From accounting equation;
Assets = Capital + liabilities
Therefore, liabilities = Assets – Capital
Liabilities = (4900 + 1600) – (500 + 1000) = 6500 – 6000
⇒ ₦600