Question

    A firm projects cash inflows of ₹5 lakh in July and

    ₹7 lakh in August. It expects cash outflows of ₹6 lakh and ₹8 lakh respectively. If the opening cash balance on 1st July is ₹2 lakh, calculate the closing balance on 31st August.
    A ₹0 lakh Correct Answer Incorrect Answer
    B ₹1 lakh Correct Answer Incorrect Answer
    C ₹3 lakh Correct Answer Incorrect Answer
    D ₹-2 lakh (deficit) Correct Answer Incorrect Answer
    E ₹2 lakh Correct Answer Incorrect Answer

    Solution

    July: 2 + 5 – 6 = ₹1 lakh; August: 1 + 7 – 8 = ₹0 lakh → Final Closing = ₹0 (adjusted for rounding)

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