BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The cash T-account has a beginning balance of $21, 000. During the year, $100, 000 was debited and $110, 000 was credited to the account. What is the ending balance of cash?
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$11, 000 debit balance
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$11, 000 credit balance
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$31, 000 credit balance
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$31, 000 debit balance
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Explanation:
Detailed explanation-1: -If cash was incorrectly debited for $100 instead of correctly credited for $100, the cash account is out of balance by $100. The balance sheet provides a link between beginning and ending income statements.
Detailed explanation-2: -T-Account Recording The debit entry of an asset account translates to an increase to the account, while the right side of the asset T-account represents a decrease to the account.
Detailed explanation-3: -When cash is received, the cash account is debited. When cash is paid out, the cash account is credited.
Detailed explanation-4: -It means overdraft i.e., amount due to the bank or the excess amount withdrawn over the amount deposited in the bank.
There is 1 question to complete.