Day: June 9, 2023

The bank statement of a business shows an overdraft of £250 at the year end.

There are cheques written but not yet cleared by the bank amounting to £140.

Lodgements not yet credited by the bank amount to £220.

How would the balance in the cash book be shown in the balance sheet?

Select ONE answer:

1. 1.current asset £170
2. 2.current asset £330
3. 3.current liability £170
4. 4.current liability £330

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – (£250) – £140 + £220
4. Not correct

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