CIMA BA3 · Chapter 6 · Question 5 of 10
The bank statement of a business shows an overdraft of $1,240. There are unpresented cheques of $860 and outstanding lodgements of $2,300. What is the balance in the cash book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $200 in hand (debit)
Explanation
Start with the bank balance as a negative figure: -$1,240. Deduct unpresented cheques (already in the cash book): -$1,240 - $860 = -$2,100. Add outstanding lodgements: -$2,100 + $2,300 = $200. The cash book therefore shows $200 in hand.
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