If liabilities amounted to ₦12,045, other assets ₦36,800and equity ₦26,896, the cash at hand would be?
Answer Details
To calculate the cash at hand, we need to use the accounting equation which states that assets equal liabilities plus equity. We can rearrange this equation to solve for assets by subtracting liabilities from both sides:
Assets = Liabilities + Equity
Assets = ₦12,045 + ₦26,896
Assets = ₦38,941
Now that we know the total assets, we can subtract the value of other assets to find the cash at hand:
Cash at hand = Total Assets - Other Assets
Cash at hand = ₦38,941 - ₦36,800
Cash at hand = ₦2,141
Therefore, the answer is option (C) ₦2,141.
In summary, the cash at hand is calculated by subtracting the value of other assets from the total assets, which can be determined using the accounting equation.