Mary works as a trader. Her cash book shows a debit balance in the bank column. She has now received her bank statement and must bring her cash book up to date by entering the following items. 1. A credit customer, Sam, has paid off his account by means of a credit transfer. 2. Mary rents out part of her premises to Dennis, and he has paid his monthly rent by standing order. The bank balance is not overdrawn. What effect do these entries have on the bank balance shown in Mary’s cash book?
- Aitem 1 decrease, item 2 decrease
- Bitem 1 decrease, item 2 increase
- Citem 1 increase, item 2 decrease
- Ditem 1 increase, item 2 increase