Bank Credits from Customer Payment and Rental Income

Steps:

• Identify item 1: Credit transfer from customer Sam is a bank deposit into Mary's account.
• Determine effect of item 1: Deposits increase the bank balance in the cash book.
• Identify item 2: Standing order rent from tenant Dennis is an automatic bank credit to Mary.
• Determine effect of item 2: Incoming rent payments increase the bank balance in the cash book.

Why D is correct:

• Both items represent cash inflows (credit transfer and standing order) per double-entry bookkeeping, where debits to bank account raise the balance.

Why the others are wrong:

• A: Wrongly assumes outflows for both, ignoring income nature.
• B: Identical to D; no distinction.
• C: Correctly identifies item 1 increase but wrongly treats rent as outflow.

Final answer: D