Let's go step-by-step through the transactions to find out the balance at the end of February.
1. Initial Balance on 02 January:
The given initial balance on 02 January is K 2,500.
2. Transaction on 25 January:
There is a debit of K 500 on 25 January. This means money is taken out from the account.
[tex]\[
\text{Balance after 25 January} = \text{Initial Balance} - \text{Debit}
\][/tex]
[tex]\[
= 2500 - 500 = K 2000
\][/tex]
3. Transactions on 20 February:
On 20 February, there is a credit of K 1,500 and a debit of K 400. Credits are amounts added to the account, and debits are amounts taken out.
[tex]\[
\text{Balance after 20 February} = \text{Balance after 25 January} + \text{Credit} - \text{Debit}
\][/tex]
[tex]\[
= 2000 + 1500 - 400 = K 3100
\][/tex]
Therefore, after applying all the transactions from January 2 to February 20, the balance at the end of February is K 3,100.
So, the correct answer is:
C. K 3,100
