Question

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,400 and the total of the credit entries to the Cash account amounted to $800. The Cash account has aA)$800 credit balance.B)$1,400 debit balance.C)$600 debit balance.D)$600 credit balance.

Answer 1

Answer: Option (c) is correct.

Step-by-step explanation:

Cash account:

Debit amount of cash account = $1,400

Credit amount of cash account = $800

Therefore, overall cash balance is calculated as the difference between the debit amount and the credit amount.

Overall cash balance = Debit amount - Credit amount

= $1,400 - $800

= $600(Debit Balance)

Therefore, the cash account has a debit balance of $600.