The following details are relevant to Lucrezia's current assets at 31 December 20X3: Inventory: her inventory at cost totals £29 030.Of this amount £2600 relates to items that are rapidly becoming obsolete.Lucrezia has been looking round for possible purchasers and thinks she has agreed a deal with a trader who will pay her £1000 for these items.
Trade receivables: Lucrezia's trade receivables total £22 450.Usually, her trade receivables are settled reliably and quickly.However, there has been a general downturn in the economy and she has decided to make an allowance of 2% for the first time.
Cash: cash at bank is £8850.
There are no other current assets.
What is the total value of Lucrezia's current assets at 31 December 20X3 for inclusion in her statement of financial position?
A)£57 281
B)£59 179
C)£58 179
D)£58 281

Question

Quizplus · Accepted Answer

- Inventory: £29,030 - £2,600 (obsolescence) + £1,000 (sale) = £27,430 
- Trade receivables: £22,450 - 2% allowance = £22,001 
- Cash: £8,850 
Total value of current assets = £27,430 + £22,001 + £8,850 = £58,281

The Following Details Are Relevant to Lucrezia's Current Assets at 31