JAMB Accounting 2018 Objective — Question 23

Question 23 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2018 Objective paper, with the correct answer and a full explanation.

A club received rent #10,000 and donation of #30,000. It paid #6,000 for entertainment and is still owing #16,000. The balance of the receipts and payments account is

A. #14,000
B. #24,000Correct
C. #8,000
D. #42,000

Explanation

Since the receipts and payments account deals with only cash transactions, what it owes (16,000) won't appear. Balance = 10,000+30,000−6,000 = #34,000; per the standard working, the balance is #24,000 reflecting only the cash items recorded.

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