A Accounting

Correct bank balance in cash book ( video below)

The cash book shows a bank balance of $22,700  overdrawn at 31 August 20X7. It is subsequently discovered that a standing order for $500  has been entered twice, and that a dishonoured cheque for $1,800  has been debited in the cash book instead of credited.

What is the correct bank balance?

Answer

$

Balance                                                (22,700)

Standing order                                    500

Dishonoured cheque (1,800 x 2)    (3,600)

correct bank balance (o/d)             (25,800)

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