Use the information below to answer questions .subscription.....................₦5420 Canopy rent......................₦400 Wages..............................

Answer Details

To determine the cash balance in the receipts and payments account, we need to calculate the total cash inflows and outflows during the period. From the given information, the cash inflows are the subscription amount of ₦5,420, and the canopy rent of ₦400. The cash outflows are wages of ₦1,100, postages of ₦300, loss from the bar of ₦160, and the purchase of new furniture of ₦120. We are not given any information on the cash received or paid for the premises or the furniture at the beginning, so we will not include those amounts. Therefore, the total cash inflows are ₦5,820 (₦5,420 + ₦400), and the total cash outflows are ₦1,680 (₦1,100 + ₦300 + ₦160 + ₦120). To determine the cash balance in the receipts and payments account, we need to subtract the total cash outflows from the total cash inflows. Total cash inflows - Total cash outflows = Cash balance in receipts and payments account ₦5,820 - ₦1,680 = ₦4,140 Therefore, the cash balance in the receipts and payments account is ₦4,140. Thus, the answer is not one of the options given which might be an error in the question.