JAMB - Accounts Principles Of Accounts (2000 - No. 34)

Given:
cash book item:
Paid to suppliers N10,800
Expenses paid N6,900
Drawings made N900
Balances at start N15,750
Balances at end N3,870
Drawings from bank to shop N1,720

Determine the receipt from debtors?
N22,470
N17,470
N8,440
N5,000

Explanation

Starting Balance: N15,750, Ending Balance: N3,870, 

Total Cash Outflows:

Paid to suppliers: N10,800

Expenses paid: N6,900

Drawings made: N900

Drawings from bank to shop: N1,720

Total Cash Outflows = N10,800 + N6,900 + N900 + N1,720 = N20,320

Net Cash Movement = Ending Balance - Starting Balance = N3,870 - N15,750 = -N11,880

Receipts from Debtors = Total Cash Inflows = Ending Balance − Starting Balance + Total Cash Outflows = N3,870 + N20,320 − N15,750 = N8,440.

 

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