Question

To add a T-account for the cash account that has a balance of 500 and you then subsequently spend 300, what will be the new balance in the cash account?

Answer 1

To update a cash T-account with an original balance of $500 after spending $300, the new balance is $200, calculated as $500 original balance minus $300 spent.

Step-by-step explanation:

When you add a T-account for the cash account that has a starting balance of $500 and you then spend $300, the new balance in the cash account will be $200. This is calculated by subtracting the amount spent ($300) from the original balance ($500).

Example T-Account:

• Cash Account
• Debit Side (Original Balance): $500
• Credit Side (Amount Spent): $300
• Debit Side (New Balance): $200