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Hi Mr John
Can you pls explain the difference between the ” deposit not credited” with ” deposit credited after date ”and ” unpresented cheques” with ” unpresented cheques after date ”
What does ” after date ” mean ? Is it ” after the reporting date “?
With the question 16.14 . Why don’t we record the ” overdraft per bank statement of 39.800″ as a negative amount ?
Many ThanksFor you first two sentences, each of the two expressions mean the same thing.
“After date” means after the date of the bank statement.
Question 16:14 from which book?
It is 16.12 and 16.14 from BPP practice book .
I understand the workings 16.12 , it is similar to your lectures , but when it comes to 16.14 , the workings seem opposite to 16.12 , and the way they express the words is different too . can you pls explain a little bit . Many Thanks
You will have to be more specific as to what your problem is with 16.14.
16.12 and 16.14 are exactly the same, but with different numbers. In both cases the statement given in the question has added and subtracted the wrong way (because the balance on the bank statement is an overdraft) and your job is to correct it.
Deposits not credited on the statement will reduce the overdraft, not increase it. Unpresented cheques will increase the overdraft, not reduce it.
Use your calculator. Start by entering minus 39,800 (because it is in overdraft), then add 64,100 (the deposits), then subtract 44,200 (the unpresented cheques). You will end up with minus 19,900 (i.e. an overdraft of 19,900)
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