Credit
Money entering the account.
Learning Objectives
- interpret bank-statement entries;
- calculate running balances;
- identify deposits, withdrawals and charges;
- interpret invoices and receipts;
- check financial documents for errors.
Introduction
This lesson develops Bank Statements and Financial Documents from meaning and patterns before moving to calculations. Look for what the quantities, shapes or symbols represent, then connect that idea to the method.
Key Notes
Read the definitions and key facts below carefully. Each rule is most useful when you can explain why it fits the situation, not simply recall it.
Visual Exploration
Notice→Connect→Explain
Use the diagrams, tables or examples in this lesson to identify what changes, what stays fixed and which relationship connects the values.
🌍 Where Will You Use This?
Financial documents help people and businesses track money, prove transactions and check what is owed or paid.
Bank Statement Language
Debit
Money leaving the account.
Running Balance
Opening balanceUS$420.00
Salary credit+US$350.00
Rent payment−US$180.00
Bank charge−US$6.50
Closing balanceUS$583.50
Invoices
An invoice requests payment and usually shows quantities, unit prices, discounts, VAT and the amount due.
12 notebooks at US$2.50 each, less 10% discount, plus 15% VAT.
1
Subtotal=12×2.50=US$30.
2
After discount=30×0.90=US$27.
3
Total with VAT=27×1.15=US$31.05.
Receipts
A receipt confirms payment has been made. Check item totals, discounts, tax, amount tendered and change.
Checking for Errors
- Recalculate quantity × unit price.
- Check the order of discount and VAT.
- Confirm credits were added and debits subtracted.
- Recalculate the final balance.
🧠 Let’s Think Together
Before calculating, identify the information given, the result required and the mathematical relationship that connects them. Predict whether the answer should be larger, smaller or unchanged, then use that prediction to check the result.
Worked Examples
Reason through the method
- Identify the known information and what must be found.
- Choose the definition, property or formula that connects them.
- Substitute carefully and show each step.
- Check the notation, units and whether the result is sensible.
Practice Questions
Foundation- An account opens with US$260, receives US$90 and pays US$75. Find the balance.
- A bank charge of US$4.50 is deducted from US$128. Find the new balance.
- Find the subtotal for 15 items at US$3.20 each.
- Opening balance US$500; deposit US$225; payments US$84.50, US$120 and bank charge US$7.25. Find closing balance.
- An invoice lists 8 items at US$12.50 each, 5% discount and 15% VAT. Find amount due.
- A customer pays US$100 for goods costing US$76.80. Find the change.
- A statement balance should be US$642.30, but it shows US$616.80. One deposit was omitted. Find the omitted deposit.
✅ Check Your Work
Show practice answers
- US$275.
- US$123.50.
- US$48.
- 500+225−84.50−120−7.25 = US$513.25.
- Subtotal=100; after discount=95; with VAT=US$109.25.
- US$23.20.
- 642.30−616.80 = US$25.50.
Common Mistakes
- Choosing a rule before identifying what the question describes.
- Skipping working or changing notation part-way through a solution.
- Accepting an answer without checking its size, sign or units.
Exam Focus
Show the mathematical relationship you are using, keep notation consistent and give a clear final answer. Use a quick estimate, diagram or inverse operation to check that the result is reasonable.
Summary
- Credits add to an account; debits reduce it.
- A running balance updates after every transaction.
- Invoices request payment; receipts confirm payment.
- Always verify quantities, percentages and totals.