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Dear Tutor
At 31 December 2012 your cash at bank account shows a balance of $1,942 overdrawn.
On comparing this with your bank statement at the same date, you discover the following:
I A payment to a supplier of $108 made by you on 29 December 2012 has not yet been
cleared by the bank
II A cheque for $256 from a customer, which was paid into the bank on 24 December 2012,
has been dishonoured on 29 December 2012
What is the correct bank balance to be shown in the statement of financial position at
31 December 2012?Answer i got is 2306 overdrawn
because i have an unpresented cheque which is not cleared – which need add back
the dishonored cheque was a dr to my cash account which i have to deduct now as it got rejectedbut solution says 2198 overdrawn as answer
please helpThe fact that there is an unpresented cheque is not relevant here.
It will have been entered in the cash account and that is correct. (It would affect the balance on the bank statement, but that is not asked for in this question).
Have you watched my free lectures on bank reconciliations?
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