JAMB Principles of Accounts 2001 Question 5

Question 5

Trial Balance

Use the information below to answer questions 5 and 6.
Given: (₦)
Fixed assets 85,600
Sales 197,000
Stock 34,300
Salaries and wages 37,000
Purchases 127,700
Share capital 120,000
Creditors 16,050
Motor expenses 10,500
Debtors 25,000
What is the cash balance?

A.₦12,095
B.₦12,590
C.₦12,905
D.₦12,950.

Show the answer and explanation

Answer: D (₦12,950.)

Explanation

Credits = 197,000 + 120,000 + 16,050 = 333,050. Debits without cash = 85,600 + 34,300 + 37,000 + 127,700 + 10,500 + 25,000 = 320,100. Cash = ₦12,950.