Neco Model Questions Vol1 2018 Financial Accounting Question 37
Practice objective / multiple choice question 37 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.
During the year a sole trader recorded the following information: total sales \(\text{₦}500,000\), gross profit rate 20% of sales, opening stock \(\text{₦}120,000\), closing stock \(\text{₦}80,000\), wages \(\text{₦}30,000\), rent \(\text{₦}20,000\), drawings \(\text{₦}10,000\). All purchases were on credit, but 25% of the purchases were paid in cash. Payments to creditors amounted to \(\text{₦}150,000\). The cash book shows total cash receipts of \(\text{₦}360,000\) and total cash payments of \(\text{₦}340,000\). The closing cash balance is \(\text{₦}90,000\). Determine the opening cash balance.
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About This Question
This is Neco Model Questions Vol1 2018 Financial Accounting Question 37. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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