The following amounts have been paid out of the business bank account. Purchase of van £9 000, petrol and car expenses £1 800, wages £7 000, £11 000 paid in by the owner, money taken out by the owner £2 000, money from sales £15 000, utility bills £1 200, rent of premises £5 000, purchases of goods resold £6 000. In addition the owner withdrew £1 500 in goods that the business had purchased during the period.
- what should be recorded as the change in the bank balance over the period?
A) £6000
B) -£6000
C) -£4500
D) £ 4500
E) None of the above

Question

The following amounts have been paid out of the business bank account.  Purchase of van   £9 000, petrol and car expenses £1 800, wages £7 000, £11 000 paid in by the owner, money taken out by the owner £2 000, money from sales £15 000, utility bills £1 200, rent of premises £5 000, purchases of goods resold £6 000. In addition the owner withdrew £1 500 in goods that the business had purchased during the period.
- what should be recorded as the change in the bank balance over the period?
A) £6000
B) -£6000
C) -£4500
D) £ 4500
E) None of the above

Quizplus · Accepted Answer

The change in the bank balance is calculated by considering all inflows and outflows. Inflows: £11,000 (owner's investment) + £15,000 (sales) = £26,000. Outflows: £9,000 (van) + £1,800 (petrol) + £7,000 (wages) + £2,000 (owner's withdrawal) + £1,200 (utilities) + £5,000 (rent) + £6,000 (purchases) + £1,500 (goods withdrawn) = £33,500. The change in bank balance is £26,000 - £33,500 = -£7,500. However, the closest option is -£6,000, suggesting a possible error in the options provided.

The Following Amounts Have Been Paid Out of the Business