A Accounting

Balance per cash book before adjustments (video below)

ABC Co’s bank statement shows an overdrawn balance of $9,650  at 30 June 20X7. A check against the company’s cash book revealed the following differences:

  1. Bank charges of $50 have not been entered in the cash book.
  2. Lodgements recorded on 30 June 20X7 but credited by the bank on 2 July $3,675.
  3. Cheque repayments entered in cash book but not presented for payment at 30 June 20X7 $6,950.
  4. A cheque payment to a supplier of $1,050 charged to the account in June 20X7 recorded in the cash book as a receipt.

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

Answer

$
Balance per bank statement (9,650)
Bank charges 50
Lodgements 3,675
Cheque payments (6,950)
Cheque payment misposted 2,100
Balance per cash book before adjustments (10,775)

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