Day: April 10, 2024

As at 31 December 2021 Alex ltd’s bank statement shows an overdraft of £1,500.

The statement includes bank charges of £30 which have not yet been recorded in the company’s cashbook.

On 29 December 2021 Alex ltd had paid a cheque of £500 to a supplier and banked £200 received from a trade receivable; neither of these items appear in the bank statement.

The overdraft on the company’s statement of financial position at 31 December 2021 should be?

Select ONE answer:

1. £1,800
2. £1,830
3. £1,200
4. £1,230

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 1

1. Correct – £1,800 ==> Balance per bank statement £1,500 o/d Less unpresented cheque £500 Add uncredited lodgement £200 = Cash at bank balance £1,800 o/d
2. Not correct
3. Not correct
4. Not correct

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