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Cash budget receipts: opening cash 10,000; sales receipts 60,000; payments 50,000. Closing cash equals:
A30,000
B10,000
C60,000
D20,000
Answer & Solution
Correct answer: D. 20,000
1. Closing cash = Opening + Receipts − Payments.
2. Substitute: 10,000 + 60,000 − 50,000.
3. = 20,000.
4. The other figures fail to net all three components.
_Source: ICAI BoS Inter Paper 3, Ch 15 "Budget", §15.7.4 Illus 10_
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