The following information relates to a bank reconciliation. 1 The bank balance i
ID: 2563913 • Letter: T
Question
The following information relates to a bank reconciliation.
1
The bank balance in the cash book before taking the items below into account was $8,970 overdrawn
2
Bank charges of $550 on the bank statement have not been entered in the cash book.
3
The bank has credited the account in error with $425 which belongs to another customer.
4
Cheque payments totalling $3,275 have been entered in the cashbook but have not been presented for payment.
5
Cheques totalling $5,380 have been correctly entered on the debit side of the cashbook but have not been paid in at the bank.
What was the balance as shown by the bank statement before taking the items above into account?
The following information relates to a bank reconciliation.
1
The bank balance in the cash book before taking the items below into account was $8,970 overdrawn
2
Bank charges of $550 on the bank statement have not been entered in the cash book.
3
The bank has credited the account in error with $425 which belongs to another customer.
4
Cheque payments totalling $3,275 have been entered in the cashbook but have not been presented for payment.
5
Cheques totalling $5,380 have been correctly entered on the debit side of the cashbook but have not been paid in at the bank.
What was the balance as shown by the bank statement before taking the items above into account?
Explanation / Answer
So the balance as shown by the bank statement before taking the items into account is 11200 overdrawn.
Reconciliation statement Bank balance in the cash book(overdrawn) $ (8,970.00) Bank charges $ (550.00) Cheque entered in the cashbook but not presented for payment yet. $ 3,275.00 Wrongly credited by bank $ 425.00 Cheque entered in the cashbook but have not been paid in at the bank. $ (5,380.00) Balance shown by the bank statement before adjustments. $(11,200.00)Related Questions
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