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 | (22700) |
| Standing order | 500 |
| Dishonoured cheque (1,800 x 2) | (3600) |
| correct bank balance (o/d) | (25800) |