Waec Model Questions Vol1 2018 Financial Accounting Question 6

The cash book of ABC Enterprises is a two‑column cash book (cash receipts and cash payments). The opening cash balance on 1 January is ₦20,000 (debit). The following cash transactions occurred during the month of January. | Date | Description | Cash Receipts (₦) | Cash Payments (₦) | |------|----------------------------|-------------------|-------------------| | 1 Jan| Received from Customer A | 12,000 | | | 5 Jan| Paid rent | | 4,000 | | 8 Jan| Received bank loan | 15,000 | | |12 Jan| Paid salaries | | 6,500 | |15 Jan| Paid cash purchase of inventory | | 8,000 | |20 Jan| Received interest income | 500 | | |25 Jan| Paid electricity bill | | 1,200 | |28 Jan| Received cash sales | 9,000 | | At the end of January the bank statement shows a balance of ₦38,000. Outstanding checks amount to ₦3,200 and deposits in transit amount to ₦2,000. Answer the following: