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JAMB Principles of Accounts 2012 Question 9

Question 9

Cash Book

Given:
Cash Book
Debit: Capital ₦2,600; Sales ₦28,200
Credit: Purchases ₦15,000; Rent ₦1,250; Motor vehicle ₦7,600
Determine the bank balance.

  1. A.₦6,950 credit
  2. B.₦6,950 debit
  3. C.₦6,000 credit
  4. D.₦6,000 debit
Show the answer and explanation

Answer: B (₦6,950 debit)

Explanation

Debits 2 600 + 28 200 = 30 800; credits 15 000 + 1 250 + 7 600 = 23 850. The debit side is bigger by ₦6 950, a debit balance.