Hi need help with buss1
Opening balance - (12000)
Cash inflows (sales) - cash outflows - 120000
Cash Outflows - 120000
Closing Balance - (12000)
what does opening balance (12000) mean? and why is the closing balance the same.
You started with 12000 for that particular month. You earned 120000 via cash inflows and spent 120000 via cash outflows. They cancel eachother out so your only left with the initial 12000 which you started with.
If the information of figures given is in brackets, it means that the figure is negative. So in your case the opening balance is negative 12,000.
Hey does anyone have any ideas on what may come up in this exam?
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