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A Cash ledger shows these postings in order: debit 6,000; credit 2,000; credit 1,000; debit 5,000; credit 1,000. What is the ending running balance?
A$9,000 debit
B$15,000 debit
C$5,000 credit
D$7,000 debit
Answer & Solution
Correct answer: D. $7,000 debit
1. The first entry is a debit of 6,000, so the balance accumulates as a debit.
2. After credit 2,000: $6{,}000 - 2{,}000 = 4{,}000$ debit.
3. After credit 1,000: $4{,}000 - 1{,}000 = 3{,}000$ debit.
4. After debit 5,000: $3{,}000 + 5{,}000 = 8{,}000$ debit.
5. After credit 1,000: $8{,}000 - 1{,}000 = 7{,}000$ debit.
6. Option B sums only debits; option D omits the last credit; option C wrongly flips to credit.
7. Therefore the ending balance is $7,000 debit.
_Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §1.3.5 "Posting", p.17_
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