Day: May 21, 2024

A company’s bank statement shows an overdraft of £3,204 at 31 March 2024.

The statement includes bank charges of £46 which have not yet been recorded in the company’s cash book.

The statement does not include cheques for £780 paid to suppliers, nor an amount of £370, received from a credit customer; both of these amounts appear in the bank statement for April 2024.

If the company prepares a statement of financial position at 31 March 2024, the figure for the bank overdraft should be?

Select ONE answer:

1. £2,794
2. £3,568
3. £3,614
4. £3,660

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 –  (£3,204 + 780- 370). The bank charges of £46 have already been charged by the bank, and no further adjustment is required in relation to them.
4. Not correct

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