The following is a summary of Ami’s cash book as presented to you for
the month of December 20X6:
Cash book shows 554 overdraft
All receipts are banked and payments made by cheque. Upon investigation you discover:
1 Bank charges of $136 entered on the bank statement had not been entered in the cash book.
2 Cheques drawn amounting to $267 had not been presented to the bank for payment.
3 A cheque for $22 had been entered as a receipt in the cash book instead of as a payment;
4 A cheque drawn for $6 had been incorrectly entered in the cash book as $66.
What balance is shown on the bank statement at 31 December 20X6?
A $913
B $941 overdraft
C $941
D $407 overdraft
Answer
book says the answer is D. 407
in the solution (its option 4) debit 60.
but I think it should be credit 60, because I have drawn 6 but incorrectly posted as 66 so my money crease by 60, and I have to make it less now, so I should credit it right?
Ask the Tutor ACCA FA
Bank reconciliation
4y ago#1A cheque drawn means that they have made a payment of $6. They have credited cash with $66 but should only have credited it with $6. Therefore they need to debit cash with $60 in order to correct the mistake.
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