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
- N2,220
- N2,078
- N1,642
-
N578
The correct answer is: D
Explanation
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