Question
Bookwork code: 3C Part of a bank ent for a small busines s is shown below. a)What is the total income? b)What is the total expenditure? c) What will the balance be on 19 February? square square square square square square square square square square square
Answer
4.1
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Unity
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Answer
a) Total Income:
b) Total Expenditure:
c) Balance on February 19: Option 1: The balance column includes intra-day transactions On Feb 19: \(£512.00 (pre-transaction Feb 19 balance) + £300.00 (new transaction Feb 19) = £812.00\)Option 2: The balance doesn't reflect transactions intraday On Feb 19:
Explanation
## Step 1: Calculate Total IncomeTo do this, we add all the entries under the "Money in" category which records all incoming transactions. We ignore other entries. In calculations, it's important to be careful with units. In this example, we take note all amounts are in British Pounds (₤). ## Step 2: Calculate Total expenditureTo do this, we add all the entries under the "Money out" tab which is a payment or expense for the business. We ignore the other entries for this step. ## Step 3: Calculate the Balance on 19 FebruaryThis finds the difference between total income and total expenditure for the respective date. In the 'example', we have two, albeit unrelated entries on the 11th of February and because it's not explicitly stated whether prices are cumulative we will show two possible solutions. One where "Balance" are updated intraday, and one where they lag and are only updated at the end of the day.