Day: May 2, 2024

A bank statement on 31 October 2017 showed an overdraft of £800.

On reconciling the bank statement, it was discovered that a cheque drawn for £80 had not been presented for payment, and that a cheque for £130 from a customer had been dishonoured on 30 October 2017, but this had not yet been reflected in the cash book.

The correct bank balance to be shown in the statement of financial position at 31 October 2017 is?

Select ONE answer:

1. £1,010 overdrawn
2. £880 overdrawn
3. £750 overdrawn
4. £720 overdrawn

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 2

1. Notcorrect
2. Correct – Balance per bank statement £(800) – Unpresented cheque (80) – Doubtful cheque £0 = £(880)
3. Not correct
4. Not correct

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