Neco Model Questions Vol1 2024 Financial Accounting Question 47
Practice objective / multiple choice question 47 from the 2024 Neco Model Questions Vol1 Financial Accounting examination.
The cash book for a month shows an opening cash balance of \(\text{₦}20,000\). During the month the following cash receipts were recorded: sales \(\text{₦}45,000\) and a loan received \(\text{₦}10,000\). Cash payments were: rent \(\text{₦}12,000\), salaries \(\text{₦}15,000\), purchase of inventory \(\text{₦}8,000\). At the start of the month the company had an overdraft of \(\text{₦}5,000\) on which a 2% monthly interest is charged. Determine the closing cash balance and state whether the cash book balances (i.e., total debits equal total credits after posting the opening and closing balances).
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About This Question
This is Neco Model Questions Vol1 2024 Financial Accounting Question 47. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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