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JAMB Principles of Accounts 2006 Question 28

Question 28

Trial Balance

Capital ₦60 000
Bank ₦12 500
General expenses ₦5 250
Creditors ₦8 025
Stock ₦17 150
Sales ₦98 500
Fixed assets ₦42 800
Insurance and rates ₦18 500
Purchases ₦63 850
What is the cash balance on the debit side if it is the only item omitted.

  1. A.₦6 745
  2. B.₦6 754
  3. C.₦6 475
  4. D.₦6 574.
Show the answer and explanation

Answer: C (₦6 475)

Explanation

Credits: 60 000 + 8 025 + 98 500 = ₦166 525. Debits without cash: 12 500 + 5 250 + 17 150 + 42 800 + 18 500 + 63 850 = ₦160 050. Cash = 166 525 − 160 050 = ₦6 475.