Question

The cash account has a debit balance of $400. Through the month the account is debited for a total amount of $1500 and credited for a total amount of $900. What is the ending balance?

Answer 1

Answer:

$1,000

Explanation:

The computation of the ending balance of cash is shown below:

Ending balance of cash  = Debit balance of cash account + total debited the amount of cash balance - the total credited amount of cash balance

= $400 + $1,500 - $900

= $1,000

Since the cash account has debit balance so it would be added while the credit balance is deducted