Your cash book at 31 December 20X5 shows a bank balance of $2,260 overdrawn. On comparing this with your bank statement at the same date, you discover the following.
1.A cheque for $228 drawn by you on 25 December 20X5 has not yet been presented for payment.
2.A cheque for $368 from a customer, which was paid into the bank on 23 December 20X5, has been dishonoured on 31 December 20X5.
What is the correct bank balance to be shown in the statement of financial position at 31 December 20X5?
Answer
Correct bank balance
= $(2,260)o/d – $368 dishonoured cheque = $(2,628) o/d