What is the club’s total liabilities?

Use the following information to answer this question.

Club building 400,000

Subscription prepaid 3,000

Sport kits 150,000

Bar creditors 85,000

Subscription owing 32,000

A. N11, 700
B. N26, 700
C. N88, 000
D. N85, 000

Correct Answer:

Option C – N88, 000

Explanation

i.e. creditors plus subscription in advance 85000 + 3000 = 88,000