Question
Complete the bank statement. multicolumn(1)(|c|)( Date ) & Description & Credit (£) & Debit (£) & Balance (£) 25 / 10 / 2017 & Starting balance & & & 406.54 26 / 10 / 2017 & Car loan & & 223.65 & 27 / 10 / 2017 & Salary & 1325.31 & &
Answer
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Catrin
Professional · Tutor for 6 years
Answer
The balance after the car loan transaction on 26/10/2017 is £182.89.The balance after the salary transaction on 27/10/2017 is £1508.20.So, the completed bank statement is:\begin{array}{|c|l|l|l|l|}\hline\ Date\ &\ Description\ &\ Credit\ (£)\ &\ Debit\ (£)\ &\ Balance\ (£)\ \\\hline\ \ 25\ /\ 10\ /\ 2017\ \ &\ Starting\ balance\ &\ &\ &\ 406.54\ \\\hline\ \ 26\ /\ 10\ /\ 2017\ \ &\ Car\ loan\ &\ &\ 223.65\ &\ 182.89\ \\\hline\ \ 27\ /\ 10\ /\ 2017\ \ &\ Salary\ &\ 1325.31\ &\ &\ 1508.20\ \\\hline\end{array}
Explanation
## Step 1:The first step is to understand the structure of the bank statement. The statement is divided into five columns: Date, Description, Credit (£), Debit (£), and Balance (£). The 'Credit' column is for incoming transactions, the 'Debit' column is for outgoing transactions, and the 'Balance' column is the remaining amount in the account after each transaction.## Step 2:The next step is to calculate the balance after each transaction. The balance after a transaction is calculated by adding the credit amount to the previous balance and subtracting the debit amount from the previous balance.### The formula to calculate the balance is: **
**## Step 3:Now, we can calculate the balance after the car loan transaction on 26/10/2017. The previous balance is £406.54, there is no credit, and the debit is £223.65.## Step 4:Substitute the values into the balance formula:**
**## Step 5:Perform the calculation to find the balance after the car loan transaction.## Step 6:Next, calculate the balance after the salary transaction on 27/10/2017. The previous balance is the balance after the car loan transaction, the credit is £1325.31, and there is no debit.## Step 7:Substitute the values into the balance formula:**
**## Step 8:Perform the calculation to find the balance after the salary transaction.