Test Index

WAEC Accounting 2012 Paper

Question : 43

Total: 47

\begin{array}{c|c} & D \\ \hline \text{Cash in hand} & 1,440\\ \text{Cash at bank} & 2440\\ \text{Stock} & 2,500\\ \text{Furniture and fittings} & 2,200 \\ \text{Creditors} & 1,000 \end{array}

The liability is

Solution:

Concept:

A liability is an amount owed by the business to outsiders.

Explanation:

Assets include cash in hand, cash at bank, stock, and furniture and fittings.

Creditors represent money owed to suppliers or other parties.

Only creditors are an obligation from the given items.

So, total liabilities =

\mathrm{D}1,000

Answer:

\mathrm{D}1,000

(Option D).

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