A company's bank statement shows $715 direct debits and $353 investment income not recorded in the cash book. The bank statement does not show a customer's cheque for $875 entered in the cash book on the last day of the accounting period. If the cash book shows a credit balance of $610, what balance appears on the bank statement?
•A $1,847 debit
•B $1,847 credit
•C $972 credit
•D $972 debit
My answer is D
715-352=362$ overdrawn
bank statement=362+610=972$ debit
please check,sir
beforehand thanks
Ask the Tutor ACCA FA
bank reconciliation
8y ago#1972 is the correct balance in the cash book.
However, the bank statement is not showing a receipt from a customer of 875 (that is in the cash book). So the balance on the bank statement at the moment will not include that receipt and therefore will be showing an overdraft of 972 + 875 = 1847 Dr.
(Why are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers - they contain answers and workings.)
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