CIMA BA3 · Chapter 6 · Question 3 of 10
The bank statement of a business shows a balance of $6,420 in hand. There are unpresented cheques of $2,180 and outstanding lodgements of $1,350. There are no other differences. What is the balance in the cash book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $5,590 debit
Explanation
Cash book balance = balance per bank - unpresented cheques + outstanding lodgements = $6,420 - $2,180 + $1,350 = $5,590 debit (in hand). Unpresented cheques have reduced the cash book but not yet the bank balance; lodgements have increased the cash book but not yet the bank balance.
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