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
Answer: C