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)