Correct Answer: Option A

Explanation

cash balance = debit side of the cash column - credit side of cash column. Hence we have;

Discount allowed = 0.02 x 2000 = 40

Debit column = 3000 + 1000 + 2000 + 200 = 6200 
6200 - 40 (cash discount) = 6160

credit column = 200 + 3000 + 200 = 3400

6160 - 3400 = 2760

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