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WAEC SSCE - Financial Accounting - 1991 (Objective)

Question 1 Report

Use the following information to answer the given question
\(\begin{array}{c|c} & DR & CR \\ & N & N \\ \hline \text{Goodwill} & 10,000 & \\ \text{Plant and Machinery} & 32,000& \\ \text{Freehold premises} & 50,000& \\ stock & 15,000& \\ debtors & 12,500 & \\ \text{Cash in bank} & 7,500 & \\ \text{cash in hand} & 2,000 & \\ \text{Profit and loss account} & & 34,000 \\ \text{Accrued rent} & & 500 \\ \text{Sundry creditors} & & 9500 \\ Capital & \overline{129,000} & \overline{129,000}\end{array}\)
What is the value of intangible assets?
Answer Details
The value of intangible assets cannot be determined from the given information. The only asset listed that is typically considered to be intangible is Goodwill, which has a value of N10,000. However, there could be other intangible assets not listed, such as patents or trademarks. It's also possible that Goodwill is the only intangible asset and its value is already provided in the table. Therefore, the answer is (E) N10,000, the value of the only intangible asset listed in the table.
Read lesson note on Nature And Significance Of Accounting (JAMB)
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