Balance per cash book before adjustments (video below)
ABC Co’s bank statement shows an overdrawn balance of $9,650 at 30 June 20X7. A check against the company’s cash book revealed the following differences:
- Bank charges of $50 have not been entered in the cash book.
- Lodgements recorded on 30 June 20X7 but credited by the bank on 2 July $3,675.
- Cheque repayments entered in cash book but not presented for payment at 30 June 20X7 $6,950.
- A cheque payment to a supplier of $1,050 charged to the account in June 20X7 recorded in the cash book as a receipt.
Based on this information, what was the cash book balance before any adjustments?
Answer
| $ | |
| Balance per bank statement | (9,650) |
| Bank charges | 50 |
| Lodgements | 3,675 |
| Cheque payments | (6,950) |
| Cheque payment misposted | 2,100 |
| Balance per cash book before adjustments | (10,775) |