Cash Balance on Bank statement (video below)
The following information relates to a bank reconciliation.
(i) The bank balance in the cash book before taking the items below into account was $2,243 overdrawn.
(ii) Bank charges of $138 on the bank statement have not been entered in the cashbook.
(iii) The bank has credited the account in error with $107 which belongs to another customer.
(iv) Cheque payments totaling $819 have been entered in the cashbook but have not been presented for payment.
(v) Cheques totaling $1,345 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 above items into account?
Answer
| Cash book | $ | Bank statement | $ |
| Balance | (2,243) | Balance (bal fig) | (2,800) |
| Bank charges | (138) | Credit in error | (107) |
| Unpresented cheques | (819) | ||
| – | Outstanding deposits | 1,345 | |
| (2,381) | (2,381) |