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Sergei Has £8658 in His Business Bank Account at 1

Question 1

Multiple Choice

Sergei has £8658 in his business bank account at 1 March 20X4. On 2 March he pays in a cheque due in respect of a trade receivable of £6620.
On 3 March he buys a non-current asset for £9020.
On 4 March he draws his usual monthly salary of £1000 from the business.
On 5 March he pays in a cheque for £15 000 in respect of a loan he has just received from a small business expansion scheme.The loan is due for repayment in 20X7.
Assuming that there are no other transactions, what is the balance on Sergei's business bank account at close of business on 5 March 20X4?


A) Overdraft of £7982
B) £21 258
C) £20 258
D) £7 018

Correct Answer:

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