| N | |
| fixtures | 1,000.00 |
| stock 31st december | 8,000.00 |
| Debtors | 5,000.00 |
| Creditors | 3,000.00 |
| Cash in hand | 7,000.00 |
| Bank overdraft | 1,200.00 |
| Typewriter | 4,500.00 |
| furniture | 2,500.00 |
| capital | 8,000.00 |
Calculate:
(a) Capital owned
(b) Working capital
(c) Current liabilities
(d) Fixed capital
(e) Capital employed.
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
Correct Answer: Option n
Explanation:
(a) Captial owned by WAZOBIA ENTERPRISES:
Capital 18,000
Add Net profit 1,700
Capital owned 19,700
(b) Working capital: Current assets:
Stock 31st Dec 8,000
Debtors 5,000
Cash in hand 7,000
20,000 Current liabilities:
Creditors 3,000
Bank overdrafts 1,200
One year co-op loan 4,100
8,300
Working Capital = Current assets - current liabilities
20,000 - 8,300 = 11,700
(c) Current liabilities;
creditors 3000
Bank overdraft 1,200
corporative loan 4,100
8,300
(d) Fixed assets:
Fixtures 1,000
Typewriter 4,500
Furniture 2,500
8,000
(e) Capital employed: fixed capital
Fixture 1,000
Typewriter 4,500
Furniture 2,500 8,000 Add current capital;
Stock 31st Dec. 8,000
Debtors 5,000
Cash in hand 7,000 20,000
28,000
(a) Captial owned by WAZOBIA ENTERPRISES:
Capital 18,000
Add Net profit 1,700
Capital owned 19,700
(b) Working capital: Current assets:
Stock 31st Dec 8,000
Debtors 5,000
Cash in hand 7,000
20,000 Current liabilities:
Creditors 3,000
Bank overdrafts 1,200
One year co-op loan 4,100
8,300
Working Capital = Current assets - current liabilities
20,000 - 8,300 = 11,700
(c) Current liabilities;
creditors 3000
Bank overdraft 1,200
corporative loan 4,100
8,300
(d) Fixed assets:
Fixtures 1,000
Typewriter 4,500
Furniture 2,500
8,000
(e) Capital employed: fixed capital
Fixture 1,000
Typewriter 4,500
Furniture 2,500 8,000 Add current capital;
Stock 31st Dec. 8,000
Debtors 5,000
Cash in hand 7,000 20,000
28,000