Use the following information to answer the question given \(\begin{array}{c|c} \text{Jan. 1} & \text{₦}\\ \hline \text{1/1/08 Capital introduced by cash} & 50,000 \\ \text{2/1/08 Bought goods for retail by cash} & 10,000\\ \text{3/1/08 Sold fixtures by cash} & 5,000\\ \text{4/1/08 Sold goods to Lagbaja on credit} & 3,000\\ \text{5/1/08 Bought goods on credit from Tamedu}& 8,000\end{array}\) Cash balance at 5/1/08 is
A. ₦50,000 B. ₦40,000 C. ₦45,000 D. ₦30,000
Correct Answer: C
Explanation
The amount of money in an account. It is calculated by adding the initial deposit to all subsequent deposits and then subtracting all disbursements. capital introduced 50000 purchase 10000 sales 5000 Bal c/d 45000 55000 55000 cash balance = 45000
