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
B ₹1 lakh
C ₹3 lakh
D ₹-2 lakh (deficit)
E ₹2 lakh
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