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Business

Finance

Set up a T-account balance sheet for the bank, with assets and liabilities, and calculate the banks net worth.

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 4QY: What is the journal entry to record an NSF check, from J. Smith for 250, that is returned with the...

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

A bank has deposits of $400. It holds reserves of $50. It has purchased government bonds worth $70. It has made loans of $500.

Set up a T-account balance sheet for the bank, with assets and liabilities, and calculate the banks net worth.

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