N34,000
N29,000
N17,000
N12,000
Correct answer is C
FIFO means first in first out. This method assumes that the oldest products in a company’s inventory have been sold first. The costs paid for those oldest products are the ones used in the calculation.
| issue price method | Date | Receipt | Issue | Balance | |||||
| FIFO | Qty | price | Value | Qty | price | Value | Qty | value | |
| 1/1 | 1000 | 10 | 10000 | - | - | - | 1000 | 10000 | |
| 2/1 | 2000 | 12 | 24000 | - | - | - | 3000 | 34000 | |
| 3/1 | - | - | - | 1500 | - | 1500 | 1500 | 18000 | |
| 4/1 | 1000 | 11 | 11000 | - | - | 2500 | 2500 | 27,500 | |
| 5/1 | - | - | - | 1000 | 1500 | 1500 | 16500 |
From the table above, value of closing stock using FIFO =
Total closing stock = 1500
previous stock bought at N12 = 500 units
Last stock bought at N11 = 1000 units
12 x 500 + (11 x 1000) = 17,000
Which of the following items are current assets?
Stock, bills receivable, cash and debtors
Stock, bill payable, cash and debtors
Stock, bad debt, bills receivable and cash
Stock, work-in-progress, cash and bills payable
Correct answer is A
Current assets include cash and other assets that are expected to be converted to cash within a year. Option A ''Stock, bills receivable, cash and debtors'' is correct.
- Stock are goods bought for the purpose of resale
- Bills receivable are incurred as a result of credit sales
- Cash is the available money at hand
- A debtor is a person, company, or other entity that owes money.
N2,600
N1,800
N800
N600
Correct answer is C
Working capital = current assets - current liabilities
2000 - 1200 = 800
N9,400
N6,000
N3,400
N3,000
Correct answer is D
Capital = Assets - liabilities
Assets = Fixed assets + current assets + drawings
2000 + 4000 + 200 = 6200
Liabilities = current liabilities + longterm loans
1200 + 2000 = 3200
6200 - 3200 = 3000
N24,700
N25,200
N26,200
N27,700
Correct answer is A
Balance per bank is the ending cash balance appearing on a bank statement.
Hence we have; cashbook balance + unpresented cheques + direct bank debit - (direct credit + cashbook credit)
20,000+5200+1000 - (1000+500) = 24,700