The balance of the receipts and payments account is?

A club received a rent of N10,000 and a donation of N30,000. it paid N6,000 for entertainment and is still owing N16,000. The balance of the receipts and payments account is?

A. N14,000
B. N24,000
C. N8,000
D. N42,000

Correct Answer:

Option A = N14,000

Explanation

income= N30,000 donation

expenditure= N10,000 rent + N6,000 entertainment= N16,000

income – expenditure = N30,000 – N16,000 = N14,000