Question on: JAMB Accounting - 2022
Use the information below to answer questions 25 and26.
Zazzau Company:
Cash in hand................N50
Cash in bank................N1 250
Stock.......................N4 880
Furniture...................N9 60
Building....................N5 500
Debtor......................N1 750
Creditors...................N2 150
Drawings of N125 were made by the shareholders of the company.
They company's net current assets amount to?
N5 780
N5 70
N6 580
N7 930
Net current assets are calculated by subtracting current liabilities from current assets.
Current assets include cash in hand, cash in bank, stock, and debtors, which sum up to N50 + N1,250 + N4,880 + N1,750 = N7,930.
Current liabilities include creditors, which amount to N2,150.
So, Net Current Assets = Current Assets - Current Liabilities
= N7,930 - N2,150
= N5,780
However, the question mentions that drawings of N125 were made by shareholders. This amount needs to be deducted from the Net Current Assets.
Therefore, Net Current Assets after deducting drawings = N5,780 - N125 = N6,580.
Hence, N6,580 is the correct answer.
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