Use the following information to answer the

\(\begin{array}{c|c} July & 1 & \text{cash in hand, N420, Cash at Bank} & N6,500 \\ & 2 & \text{Paid Asaolu T. by cheque} & N1,500 \\ & 5 & \text{Paid transport by cash} & N42 \\ & 9 & \text{Received cheque from Olawoyin} & N3,600 \\ & 15 & \text{Cash sales to date} & N1,800 \\ & 17 & \text{Paid Haruna by cheque} & N1,200 \\ & 19 & \text{Paid Umana by cash} & N100 \\ & 31 & \text{Paid wages by cash} & N1,500 \end{array}\)

The cash in hand on 31st July is

  • A N2,220
  • B N2,078
  • C N1,642
  • D N578

The correct answer is D. N578

The cash at hand refers to the amount of money that your business has immediately available on the last day of the reporting period. Hence we have;

Income = 420 + 1800 = 2220

Expense = 42 + 100 + 1500 = 1642

2220 - 1642 = 578

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