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Question:
The bank reconciliation statement of high ltd shows outstanding lodgements of $2300 and outstanding cheques to suppliers of $2000.The company,s bank account in the ledger shows a debit balance at $12500.
What balance does the bank statement of high ltd show?
A)$12,200
B)$12,500
C)$12,800
D)$16,800
What are outstanding cheques ? Please tell me the right answer really confused here
Thanksi think these are cheques which we have written to pay our suppliers but which suppliers havent taken to bank yet
A
Yeah, Tariro is right.
Due to the delay due to a clearing system of a bank, or simply coz the cheque hasn’t yet been ‘banked’ by a supplier, an outstanding cheque or ‘unpresented’ cheque doesn’t appear on the bank statement. You’ve to adjust this in the bank statement by reducing the bank statement balance.Outstanding cheaques means Unpresented cheaques and will be less than or minused from Bank statement
A is right
Put The Debit balance given to u in debit side of the T account and then the unpresented cheaques should be put into the debit side of bank ledger account and put the uncredited cheaques into the credit side of T account and the seePhillip bank reconciliation statement shows outstanding lodgements paid in by Phillip of $3,800 and outstanding cheques to suppliers of $3500.His bank account in his ledger shows a debit balance of $25,000.
What balance does Phillip’s bank statement show ? Please help guys I’m new in this area .So, here the bank account in the ledger will be right up to date. The bank account does not yet reflect the uncredited lodgement or outstanding (unpresented) cheques.
Start with the bank account of 25000 Dr. This represents cash that would be at the bank if the bank were up to date.
The bank has not yet processed the cheques of 3500 so that means the bank account would be showing an asset of 28500. Nor has the bank yet processed the lodgement of 3800 so that must make the bank cash lower….ie 28500-3800 = 24700.
In the bank statement that would be shown as 24700Cr.
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