Gce Model Questions Vol1 2018 Financial Accounting Question 5

The following information is available for XYZ Ltd for the year ended 31 March 2025.\n- Opening cash balance: \(\text{₦}25,000\)\n- Cash sales: \(\text{₦}120,000\)\n- Credit sales: \(\text{₦}200,000\); of which \(\text{₦}30,000\) was received in cash during the year.\n- Purchases: \(\text{₦}150,000\) (all on credit).\n- Cash purchases: \(\text{₦}20,000\)\n- Payments to creditors: \(\text{₦}140,000\)\n- Rent expense paid in cash: \(\text{₦}15,000\)\n- Salaries paid in cash: \(\text{₦}25,000\)\n- Interest received in cash: \(\text{₦}5,000\)\n- Bank loan taken: \(\text{₦}40,000\) (cash received).\n- Dividend paid in cash: \(\text{₦}10,000\)\n- Closing cash balance as per bank statement: \(\text{₦}30,000\)\n- The bank statement shows a cheque issued for \(\text{₦}8,000\) that was not recorded in the cash book.\nNo other information is available. Assume no other cash receipts or payments.\nRequired: Reconstruct the cash book to determine (a) the cash receipts from customers (excluding cash sales) and (b) the cash payments to suppliers (excluding cash purchases). Also compute the net profit for the year.