The beginning balance in Cash was $400. Additional cash of $800 was received. Cheques were written for $700. The Cash balance is
A) $900 debit.
B) $500 debit.
C) $500 credit.
D) $800 credit.

Question

Quizplus · Accepted Answer

The beginning balance of $400 is a debit balance. Additional cash of $800 is also a debit (+$800). Cheques written for $700 are a credit (-$700). 
Therefore, the ending balance in Cash will be:
$400 (beginning balance) + $800 (additional cash) - $700 (cheques written) = $500 debit.

The Beginning Balance in Cash Was $400