| N | |
| motor vehicle | 60,000 |
| fixtures & fittings | 60,000 |
| machinery | 65,000 |
| warehouse | 18,000 |
| stock | 20,000 |
| prepayment | 10,000 |
| Accrued expenses | 12,000 |
| cash-in-hand | 8,000 |
| cash at bank | 6,000 |
| bank overdraft | 3,500 |
| creditors | 5,000 |
| Debtors | 6,000 |
| premises | 75,000 |
(a) From the above figures, calculate the following, showing all workings:
(i) Capital owned
(ii) Fixed assets
(iii) Working capital
(b) List five sources of capital available to a public limited company
Explanation
(a)(i) Fixed Assets:
Premises N75,000
Motor Vehicles N60,000
Fixtures and fittings N60,000
Machinery N65,000
Warehouse N18,000
current assets:
Stock N20,000
Prepayment N10,000
Cash-in-hand N8,000
Cash-at-Bank N6,000
Debtors N6,000 328,000
Total Liabilities =
Accrued Expenses N12,000
Bank Overdraft N3,500
Creditors N5,000 20,500
307,500
(ii) Fixed Assets:
Premises N75,000½
Motor Vehicles N60,000½
Fixtures and Fittings N60,000½
Machinery N65,000½
Warehouse N18,000½
N278,000½
(iii) Working Capital = Current Assets — Current Liabilities
Current Assets =
Stock N20,000
Prepayment N10,000
Cash-in-hand N8,000
Cash-at-bank N6,000
Debtors N6,000 N50,000
Current Liabilities =
Accrued Expenses N12,000
Bank Overdraft N3,500
Creditors N5.000 N20,500
N29,500
(b) The following are sources of capital available to a public limited company namely:
(i) Shares
(ii) Debentures
(iii) Trade credit
(iv) Plough back profits
(v) Leasing
(vi) Debt factoring
(vii) Bank loans and overdrafts etc
(vi) Sale of assets
(ix) Sale/leaseback.