WAEC - Accounts Principles Of Accounts (2012 - No. 43)
Use the following information to answer the given question
\(\begin{array} {c|c} & D \\ \hline \text{Cash in hand}& 1,440\\ \text{Cash at bank} & 2440\\ \text{Stock} & 2,500\\ \text{Furniture and fittings} & 2,200 \\ \text{Creditors} & 1,000\end{array}\)
The liability is
\(\begin{array} {c|c} & D \\ \hline \text{Cash in hand}& 1,440\\ \text{Cash at bank} & 2440\\ \text{Stock} & 2,500\\ \text{Furniture and fittings} & 2,200 \\ \text{Creditors} & 1,000\end{array}\)
The liability is
D7,580
D6,580
D5,380
D1,000
Explanation
A liability is an obligation arising from a past business event. They are obligations owed to outsiders by a business
Creditor; is a person or company to whom money is owed.
From the table above, liabilities is 1,000.
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