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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

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?
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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

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UnityProfessional · Tutor for 6 years

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a) Total Income: \(30.00 + 15.00 + 25.00 + 300.00 = £370.00\)<br />b) Total Expenditure: \(140.00 + 20.00 + 8.00 + 30.00 = £198.00\)<br />c) Balance on February 19: <br /><br />Option 1: The balance column includes intra-day transactions<br /> On Feb 19: \(£512.00 (pre-transaction Feb 19 balance) + £300.00 (new transaction Feb 19) = £812.00\)<br /><br />Option 2: The balance doesn't reflect transactions intraday<br /> On Feb 19: \(£512.00 existing from Feb 17 + new transaction happens at the end of Feb 19. = £512.00\)

Explain

## Step 1: Calculate Total Income<br />To 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 (₤). <br /><br />## Step 2: Calculate Total expenditure<br />To 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. <br /><br />## Step 3: Calculate the Balance on 19 February<br />This finds the difference between total income and total expenditure for the respective date. <br /><br />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.
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