Posted on Leave a comment

Correct bank balance in cash book

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)
Leave a Reply