Answered: igma's bank statement shows an…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 4PB

See similar textbooks

Related questions

Concept explainers

Question

Sigma's bank statement shows an overdrawn balance of $38,600 at 30 June 20X5. A check against the

company's cash book revealed the following differences:

1 Bank charges of $200 have not been entered in the cash book.

2 Lodgements recorded on 30 June 20X5 but credited by the bank on 2 July $14,700.

3 Cheque repayments entered in cash book but not presented for payment at 30 June 20X5

$27,800.

4 A cheque payment to a supplier of $4,200 charged to the account in June 20X5 recorded in the

cash book as a receipt.

Based on this information, what was the cash book balance before any adjustments?

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

Expert Solution

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions