Concept:Current liabilities are debts a business must pay within one year, such as creditors and a bank overdraft.
Explanation:To find current liabilities, identify only the items that represent amounts owed to outsiders.
Creditors of
8,000.00 is a current liability because it is money owed to suppliers.
Overdraft of
5,000.00 is a current liability because it is money owed to the bank.
Opening stock, purchases, closing stock, and debtors are not current liabilities.
Stock and purchases relate to inventory, while debtors represent amounts owed to the business.
Now add the two current liability items together.
Total current liabilities
=$8,000.00+$5,000.00=$13,000.00.
Answer:The value of current liabilities is
D13,000.00.
The correct option is B (or C, as both show
D13,000.00).