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?
₦20,600
₦8,050
₦3,650
₦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.
Rates owing Insurance prepaid Subscription in arrears |
1/199 3,600 50 700 |
31/12/99 2000 1000 600 |
The figure ₦1000 represent what in the balance sheet.
Assets
Liability
Capital
Subscription
Correct answer is B
The ₦1000 represent liability in the balance sheet, since it is paid by the members representing dues for next year. Subscription in advance are liabilities, because the company that received the money has not yet earned it and it has an obligation (a liability) to deliver the related goods or services in the future.
Rates owing Insurance prepaid Subscription in arrears |
1/199 3,600 50 700 |
31/12/99 2000 1000 600 |
Calculate the subscriptions in the Income and expenditure account.
8400
7400
6400
7200
Correct answer is B
xplanation
| Dr | Cr |
| Bal b/f 700 | cash (99) 7500 |
| J $ K 7400 | (2000) 1000 |
| Bal c/d 1000 | Bal c/d 600 |
250
200
300
400
Correct answer is C
Interest on drawings:
Ojo = 5% × 1000 = ₦50
Sam = 5% × 2000 = ₦100
Ade = 5% × 900 = ₦45
Interest on Capital:
Ojo = 5% × 5000 = ₦250
Sam = 5% × 4,000 = ₦200
Ade = 5% × 6000 = ₦300
Use the information below to answer this question.
7000
4921
3000
991.8
Correct answer is D
No explanation has been provided for this answer.