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    keagangriffin's Avatar
    keagangriffin Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Aug 23, 2009, 04:31 PM
    the cash account
    7. On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the
    account was debited for a total of $12,200 and credited for a total of $11,500. What must have been the balance in
    the Cash account on September 1?
    A) A $0 balance.
    B) A $4,300 debit balance.
    C) A $4,300 credit balance.
    D) A $5,700 debit balance.
    E) A $5,700 credit balance.

    --- Okay the answer is B because 5000-12200+11500 = 4300

    BUT.. I don't understand because I thought in the cash account debited meant add and credited meant subtract.. so it should be 5000+12200-11500? Please help explain..
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Aug 23, 2009, 10:16 PM

    Because the 5000 is the ending balance. You have to work backwards to get back to the beginning balance.

    I think you probably just missed the dates.
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