Receipts and Payment Account (Extract)
                               N
Bal b/f                   3650       Insurance   900
subscription   (99) 7500       Rate          11,700
                   (2000) 1000      Bal c/d        8,050
Fees                      8500

                            20,650                       20,650

The following information were given:


Rates owing
Insurance prepaid
Subscription in arrears
1/199
3,600
50
700
31/12/99
2000
1000
600

What is the opening cash balance?

A.

₦20,600

B.

₦8,050

C.

₦3,650

D.

₦8,500

Correct answer is C

The opening balance is represented as bal b/f. From the question above and the closing cash balance is represented as bal c/d. Both balance indicate cash in the balance sheet.