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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 & &

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 & &

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 & &

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CatrinProfessional · Tutor for 6 years

Answer

The balance after the car loan transaction on 26/10/2017 is £182.89.<br /><br />The balance after the salary transaction on 27/10/2017 is £1508.20.<br /><br />So, the completed bank statement is:<br /><br />\begin{array}{|c|l|l|l|l|}<br\ />\hline\ Date\ &\ Description\ &\ Credit\ (£)\ &\ Debit\ (£)\ &\ Balance\ (£)\ \\<br\ />\hline\ \ 25\ /\ 10\ /\ 2017\ \ &\ Starting\ balance\ &\ &\ &\ 406.54\ \\<br\ />\hline\ \ 26\ /\ 10\ /\ 2017\ \ &\ Car\ loan\ &\ &\ 223.65\ &\ 182.89\ \\<br\ />\hline\ \ 27\ /\ 10\ /\ 2017\ \ &\ Salary\ &\ 1325.31\ &\ &\ 1508.20\ \\<br\ />\hline<br\ />\end{array}

Explain

## Step 1:<br />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.<br /><br />## Step 2:<br />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.<br /><br />### The formula to calculate the balance is: <br />**\[<br />\text{{Balance}} = \text{{Previous Balance}} + \text{{Credit}} - \text{{Debit}}<br />\]**<br /><br />## Step 3:<br />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.<br /><br />## Step 4:<br />Substitute the values into the balance formula:<br /><br />**\[<br />\text{{Balance}} = £406.54 + £0 - £223.65<br />\]**<br /><br />## Step 5:<br />Perform the calculation to find the balance after the car loan transaction.<br /><br />## Step 6:<br />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.<br /><br />## Step 7:<br />Substitute the values into the balance formula:<br /><br />**\[<br />\text{{Balance}} = \text{{Previous Balance}} + £1325.31 - £0<br />\]**<br /><br />## Step 8:<br />Perform the calculation to find the balance after the salary transaction.
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