PRC-1 · Chapter 10 · Question 8 of 100
Non-current liabilities are Rs. 276,000. Total current liabilities are 2/3 of non-current liabilities. Trade payables are Rs. 125,000, accrued expenses are Rs. 16,200, and unearned income is Rs. 11,800. The only other current liability is a bank overdraft. What is the bank overdraft amount?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 31,000
Explanation
Total Current Liabilities = 276,000 x 2/3 = 184,000. Bank overdraft = Total Current Liabilities (184,000) - Trade payables (125,000) - Accrued expenses (16,200) - Unearned income (11,800) = Rs. 31,000.
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