A cashbook had a credit balance of $2 000. The following items appeared on the bank statement only. | |$ | | --- | ---: | | Bank charges | 620 | | Credit transfer | 1 300 | | Dividends received | 2 960 | | Dishonoured cheques | 250 | | Standing order: ZM Insurance | 370 | What was the updated cashbook balance?

A$1 020 credit

B$1 020 debit

C$5 120 credit

D$5 120 debit

Explanation:

-2\,000-620+1\,300+2\,960-250-370 = \$1\,020

debit.

ZIMSEC Principles of Accounts 7112/1 Paper 1 (Multiple Choice), November 2013, Q16

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