JAMB Accounts Principles of Accounts 2012 Paper

Concept:Bank balance is determined by comparing total debits (money in) with total credits (money out) on the bank account.Explanation:Start with the opening balance and add all receipts on the debit side: $2,600 + 28,200 = 30,800$Add all payments on the credit side: $15,000 + 7,600 + 1,250 = 23,850$Find the difference: $30,800 - 23,850 = 6,950$Since the debit side is larger than the credit side, the balance is a debit balance of N6,950.Answer:N6,950 debit Option B.