FSTP Help

JakeR

Hi Guys

How do you get to the answer for the following question

On 1 July 20X2 a sole traders bank account showed an overdraft of £662. During the year ended 30 June 20X3 deposits into
the account totaled £50122 and withdrawals from the account were £48116. The closing balance is?

I got the answer to be £1344 in credit but when i try to do a T account to make sure it is correct it is carried down on the credit side which means it is overdrawn.

Can someone explain how to solve it.

KoopaCooper

OK, I'm not sure if I'll be able to do this in a text post, but I'll try to do a T-account here, hope it works...the table borders aren't working properly, hope it's ok.

Debit	|	Credit
30 June 20X3 Deposits £50122	|	1 July 20X2 Bal b/d £662
	|	30 June 20X3 Withdrawals £48116
	|	30 June 20X3 Bal c/d £1344
Total £50122	|	Total £50122
1 July 20X3 Bal b/d £1344	|

JakeR

oh ok i was not extending the account after i just saw that it finished on the credit side so i was getting a bit confused. That clears it up. Thanks