Bola a grocer, keep petty cash on imprest system, the float being GH⊄ 8,000. These transactions took place in January 2018.

GH⊄
January 1 Petty cash in hand 1034
January 1 Petty cash to restore float 6966
January 6 Bought note books 656
January 7 Paid wages 1828
January 14 Bought postage stamps 750
January 16 Paid to Biodun a creditor 1072
January 18 Paid wages 1856
January 23 Purchased envelopes 874
January 28 Purchased postage stamps 420

A. GH⊄ 6,928
B. GH⊄ 6,966
C. GH⊄ 7,456
D. GH⊄ 8,000

Correct Answer:

Option C – GH⊄ 7,456

Explanation

Total transaction during the period = 656 + 1828 + 750 + 1072 + 1856 + 874 + 420
= GH⊄7456

SEE ALSO  Williams and Jacob are in partnership but there is no partnership agreement. The capital contributed are N60,000 and N40,000 respectively. Profit for the year is N20,000. Interest on capital is 10%. What is Jacob's share of profit?

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