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page.492/Q.63/ Mauritz Co is preparing a bank reconciliation. The bank balance in the general ledger is $540 credit. There are two items that have not yet been dealt with.
1/ A cheque for $620 was sent to a supplier but is not yet showing on the bank statement.
2/ A bank charge of $28 was charged by the bank but was not recorded by Mauritz Co.
What is the closing balance on Mauritz Co’s bank statement?
A $1,132 overdrawn
B $1,188 overdrawn
C $52 cash at bank
D $108 cash at bankThe answer is C.
The ledger balance of 540$ Credit should be adjusted by a credit entry of $28 for bank charges. Therefore the corrected ledger balance is $568 credit. The bank statement balance is then $(568) + $620 cheques not yet on bank statement, ie $52 cash at bank.1# the balance in the cash book is -(568)cr ,so if we want balance per bank statment ,the balance per cash book will be +568 dr ,isn’t it ?
so,why they leave it minus here -(568)?I have no idea what you mean by “page 492/Q63”.
I assume you are referring to a study text, but you have not said which one.
If you are watching my free lectures then you do not need a study text – the lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.There is a credit balance on the cash account. The bank statement will show a debit balance of 568.
The reason that the bank statement and the cash account show debits and credits the opposite way round is explained in detail in my free lectures.
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