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The balance on Janet’s cash book is $27 overdrawn. Her bank statement shows that she is $625 in credit.
When Janet does a reconciliation she finds that there are unpresented cheques of $327 and unposted direct
debits of $200. However, one of her customers has paid $525 directly into her bank account, so her cash
book now has a debit balance. What is the value of this debit balance? $ (2 marks)Ans: $298
Can someone please explain?
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I am studying this at the moment, so heres what I think you need to do.
Start with the Cashbook :
Beginning Balance ( $ 27)
Add the customer payment $525 as this has been received but not recorded in the cashbook
Deduct the direct Debit ($200) as this has been paid but not recorded in the cashbook
Adjusted Balance $298Check the Bank Statement
Beginning Balance $625
Deduct Unpresented Cheques ($327)
Adjusted Balance $298
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