Punit has identified the following reasons for his cash book balance of $1,200 debit being different to the
balance on his bank statement:
(1) Uncleared lodgements of $400
(2) The bank has mistakenly recorded a direct debit payment of $300 twice
(3) Unpresented cheques of $200
What is the balance on Punit's bank statement, prior to any of the above items being adjusted?
Why does the solution substract 400 and add 200? Dont we add uncleared lodgements and substract unpresented cheques?
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Bank statement
5y ago#1Because you need to work backwards because the question wants to know what the balance on the bank statement was before dealing with any of the items listed.
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