Question 41
Cash BookUse the following information to answer questions 41 to 43.
The following transactions were recorded in the cash book of Ibusah for the month of February 2019:
Balance b/f: D 200,000
Commission received: D 180,000
Receipts from Ojah: D 98,300
Electricity bill: D 40,000
Rent: D 73,400
Drawings: D 28,600
Insurance: D 12,800
The total income for the month is
- A.D 306,900.
- B.D 278,300.
- C.D 180,000.
- D.D 154,800.
Show the answer and explanation
Answer: B (D 278,300.)
Explanation
New receipts: commission 180,000 + receipts from Ojah 98,300 = D 278,300 (the opening balance is not income).