A £100 debit balance brought down in the cash column of a firm’s Cash Book means that…?
Select ONE answer:
- the firm has £100 cash in hand
- the amount of cash paid out exceeds the amount of cash received by £100
- the total of cash paid out is £100.
- the total of cash received is £100.
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple choice question is suitable for Accounting KS5 classes.
The answer is 1
- Correct
- Cash paid out cannot exceed cash received.
- The total of cash paid out could be £100 but only if the total of cash received was £200.
- The total of cash received could be £100 but only if there was no cash paid out.
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