ACCA AA · Chapter 11 · Question 6 of 12
At the year end, the bank statement of Ferrel Co shows a balance of $42,000 in the company's favour. There are outstanding lodgements of $6,500 and unpresented cheques of $9,800. What should the balance per the cash book be?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $38,700
Explanation
Balance per cash book = bank statement balance + outstanding lodgements - unpresented cheques = $42,000 + $6,500 - $9,800 = $38,700. $45,300 reverses the treatment of both items, $58,300 adds both, and $25,700 deducts both.
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