What will be the resulting balance in the cash book?

A company’s cashbook has an opening balance of £4,860 debit.

The following transactions then took place:

(a) Cash sales – £23,500, including VAT of £3,500

(b) Receipts from customers – £18,600

(c) Payments to payables £12,400, less cash discounts of £240

(d) Bank Charges – £260

What will be the resulting balance in the cash book?
A . £24,580 credit
B . £31,040 debit
C . £34,540 debit
D . £21,340 credit

View Answer

Answer: C