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The cash book of Worcester shows a credit balance of 1350 Cheques of 56 have been written to suppliers but not yet cleared the bank , uncleared lodgements amount to 128. The bank has accidentally credited Worcester+s account with interest of 15( due to another customer. A standing order of 300 has not been accounted for in the general ledger.
What is the balance on the bank statement?A.
A 993 Cr
B993 Dr
C 1707 Cr
D 1707 DrSir , so far what I did was work backwards so, the balance I got so far was add 56 less 128 and add 15. I dont know what to do with the standing order. Can u pls help me out with the workings and what the answer shall be. Thaks
You should not be practicing questions for which you do not have a printed answer – there is no point at all.
You must buy a Revision Kit from one of the ACCA approved publishers – they are full of exam standard questions together with answers (and workings for the answers).You are correct in what you have done so far. With regard to the standing order, it means that the cash book balance of 1350 (overdrawn) should actually be 1650 (overdrawn) because the standing order is a payment that has not been entered.
Because the cash book balance is overdrawn, be careful when you are working backwards 🙂
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