Bece Model Questions Vol1 2019 Business Studies Question 5

A small business, GreenLeaf Enterprises, received its bank statement for the month of June from FirstBank Nigeria. The statement shows the following information: - Opening balance on 1 June: ₦120,000 - Deposits: * Sales receipts on 5 June: ₦45,000 * Loan received on 12 June: ₦30,000 * Cash sales on 25 June: ₦15,000 - Withdrawals: * Rent payment on 10 June: ₦20,000 * Utilities payment on 15 June: ₦8,000 * Purchase of inventory on 20 June: ₦25,000 * Salary payment on 28 June: ₦18,000 - Bank charges: * Monthly service fee: ₦2,000 * Transaction fee of ₦500 for each withdrawal (four withdrawals in total) - Interest rate: 2 % per month, calculated on the average daily balance for the month. In addition, the bank’s loan policy states that an applicant must have an average monthly cash surplus of at least ₦15,000 over the preceding three months. GreenLeaf’s cash surplus for the two previous months were: - April: ₦12,000 - May: ₦10,000 Using the information above, answer the following questions.