A Cash ledger has a running debit balance of $5,000. A credit entry of $1,200 is posted. What new balance appears, and in which column?

1. The previous balance is a $5,000 debit and the new entry is a $1,200 credit. 2. When the prior balance is a debit and a credit is posted, subtract the credit from the balance. 3. Compute: $5{,}000 - 1{,}200 = 3{,}800$. 4. The difference stays in the Debit balance column, ruling out the credit-column options C and D. 5. Option A wrongly adds instead of subtracting. 6. Therefore the balance is $3,800 in the debit column. _Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §1.3.5 "Posting", p.16_