WAEC Accounting 2025 Theory — Question 14

Model answer

Section | Item | N | N Fixed assets | Premises | 735000 Fixed assets | Equipment | 300000 Fixed assets | Furniture | 69000 Fixed assets | Total fixed assets | 1104000 Current assets | Stock | 420000 Current assets | Debtors | 172500 Current assets | Prepayment | 16500 Current assets | Bank | 6000 Current assets | Total current assets | 615000 Current liabilities | Creditors | 97500 Current liabilities | Accruals | 22500 Current liabilities | Total current liabilities (net of 120,000 set-off) | (120000) Net assets | Working capital | 495000 Net assets | Total net assets | 1599000 Financed by | Share capital | 1500000 Financed by | Less: Loss from purchase of business | (105000) Financed by | 1395000 Financed by | Loan | 204000 Financed by | Total capital employed | 1599000