O Level Accounting (7707)•7707/11/M/J/20

Explanation
Calculating closing bank balance using credits and debits Steps:
- Opening balance is debit 600 (overdraft).
- Add credits from cheque deposits: -4200 = $3600 credit.
- Subtract debits from direct debit: 180 = $3420 credit.
- Provided transactions yield $3420 credit balance, not matching any choice.
Why A is correct:
- Not enough information; calculated balance $3420 credit differs from all options, suggesting missing transactions (e.g., additional debits like cheques paid).
Why the others are wrong:
- B: $870 debit ignores net credit from deposits exceeding opening overdraft plus debit.
- C: 4020 to opening -$600.
- D: $270 debit fails to account for large credit from deposits.
Final answer: Not enough information.
Topic: Bank reconciliation
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