The following balances were extracted from the books of Adama Ltd on 31st August 2007
| # | |
|
Sales |
200000 |
|
Drawings |
10000 |
|
Land and building |
70000 |
|
Furniture |
10000 |
|
Debtors |
50000 |
|
Creditors |
35000 |
|
Capital |
85000 |
|
Bank |
10000 |
|
General expenses |
10000 |
|
Stock ( 31-08-2007) |
10000 |
|
Purchases |
140000 |
|
Stock (1-09- 2006) |
20000 |
Total fixed assets is
- #70,000
- #150,000
- #165,000
-
#80,000
The correct answer is: D
Explanation
Total Fixed Assets = Land and Building + Furniture
Total Fixed Assets = #70,000+ #10,000
Total Fixed Assets = #80,000