Use the following information to answer the given question \(\begin{array}{c|c} & ₦ \\ \hline \text{Opening balance} & 1,894 Dr \\ \text{Cheques received fr...

Answer Details

The closing balance of ₦3,368 Dr represents the amount of money owed by customers to the business at the end of the accounting period. This amount is classified as a current asset in the balance sheet because it is an amount of money that the business expects to receive within the next accounting period, usually one year. A current asset is an asset that is expected to be used up or converted to cash within a year, and it includes items such as cash, accounts receivable, inventory, and prepaid expenses. Therefore, the closing balance of ₦3,368 Dr would be classified as a current asset in the balance sheet.