What was the bank balance at the end of the month?
Answer Details
To determine the bank balance at the end of the month, we need to calculate the total amount of cash and cheques deposited in the bank, and the total amount of cash and cheques that have been issued or withdrawn from the bank.
From the given cash book, we can see that:
- The opening bank balance was ₦5,000.
- There were no bank deposits during the month.
- Cheques amounting to ₦800 were issued during the month.
- There were no withdrawals from the bank during the month.
- The closing bank balance was recorded as ₦6,500.
Therefore, the bank balance at the end of the month is ₦6,500. The correct answer to the question is option B: ₦6,500.