The bank statement on 31 August 20X9 showed an overdraft of $6,400. On reconciling the bank statement, it was discovered that a cheque drawn by your company for $640 had not been presented for payment, and that a cheque for $1,040 from a customer had been dishonoured on 30 August 20X9, but that this had not yet been notified to you by the bank.
What is the correct bank balance to be shown in the statement of financial position at 31 August 20X9 ?
Answer
| $ | |
| Balance per bank statement | (6400) |
| Unpresented cheque | (640) |
| Dishonoured cheque (affects cash book only) | – |
| (7040) |