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Use the information to answer this question Receipts and Payment Account (Extract) ...

Use the information to answer this question
Receipts and Payment Account (Extract)
N
Bal b/f 3650 Insurance 900
subscription (99) 7500 Rate 11,700
(2000) 1000 Bal c/d 8,050
Fees 8500
20,650 20,650
The following information were given:
Rates owingInsurance prepaidSubscription in arrears 1/1993,60050700 31/12/9920001000600





What is the opening cash balance
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  • A ₦20,600
  • B ₦8,050
  • C ₦3,650
  • D ₦8,500
Correct Answer: Option C
Explanation:
The opening balance is represented as bal b/f. From the question above and the closing cash balance is represented as bal c/d. Both balance indicate cash in the balance sheet.

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