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