What is the opening cash balance

Use the information to answer this question
Receipts and Payment Account (Extract)
                               N
Bal b/f                   3650       Insurance   900
subscription   (99) 7500       Rate          11,700
                   (2000) 1000      Bal c/d        8,050
Fees                      8500

                            20,650                       20,650

The following information were given:

Rates owing
Insurance prepaid
Subscription in arrears

 1/199
3,600
50
700		 31/12/99
2000
1000
600

What is the opening cash balance

  • A.
    ₦20,600
  • B.
    ₦8,050
  • C.
    ₦3,650
  • D.
    ₦8,500
Correct Answer: Option C
Explanation

The opening balance is represented as bal b/f. From the question above and the closing cash balance is represented as bal c/d. Both balance indicate cash in the balance sheet.

You May Also Like