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WAEC SSCE - Financial Accounting - 1999 (Objective)

Question 1 Report

Use the following information to answer the
\(\begin{array}{c|c} July & 1 & \text{cash in hand, N420, Cash at Bank} & N6,500 \\ & 2 & \text{Paid Asaolu T. by cheque} & N1,500 \\ & 5 & \text{Paid transport by cash} & N42 \\ & 9 & \text{Received cheque from Olawoyin} & N3,600 \\ & 15 & \text{Cash sales to date} & N1,800 \\ & 17 & \text{Paid Haruna by cheque} & N1,200 \\ & 19 & \text{Paid Umana by cash} & N100 \\ & 31 & \text{Paid wages by cash} & N1,500 \end{array}\)
The cash in hand on 31st July is
Answer Details
To calculate the cash in hand on 31st July, we need to subtract all the cash payments made from the cash receipts. Starting with the opening cash balance of N420, we have: - Cash at bank = N6,500 - Cash payments made: - Paid Asaolu T. by cheque = N1,500 - Paid transport by cash = N42 - Paid Haruna by cheque = N1,200 - Paid Umana by cash = N100 - Paid wages by cash = N1,500 - Total cash payments = N4,342 - Cash receipts: - Received cheque from Olawoyin = N3,600 - Cash sales to date = N1,800 - Total cash receipts = N5,400 To calculate the cash in hand, we subtract the total cash payments from the opening cash balance plus the total cash receipts: Cash in hand = Opening cash balance + Total cash receipts - Total cash payments Cash in hand = N420 + N5,400 - N4,342 Cash in hand = N1,478 Therefore, the cash in hand on 31st July is N1,478. Answer option (C) N1,642 is not correct.
Read lesson note on Cashbook (JAMB)
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