The following information relates to a bank reconciliation.
1. The bank balance in the cashbook before taking the items below into account was $45,376 overdrawn.
2. Bank charges of $1,572 on the bank statement have not been entered in the cashbook.
3. The bank has credited the account in error with $220 which belongs to another customer.
4. Cheque payments totalling $220 have been entered in the cashbook but have not been presented for payment.
5. Cheques totalling $820 have been correctly entered on the debit side of the cashbook but have not been paid in at the bank.
What was the balance as shown by the bank statement before taking the items above into account?
SUGGESTED SOLUTIONS
Adjusted Cashbook Balance
| DEBIT $ | CREDIT $ | ||
| Opening balance OD | 45,376 | ||
| Bank charges | 1,572 | ||
| Closing Balance | 46,948 |
Bank Reconciliation
| $ | |
| Opening balance in Bank statement | ??? |
| Less Unpresented cheque | (220) |
| Add cheque not credited | 820 |
| Error by bank | (220) |
| Equal to Adjusted Cashbook | (46,948) |
Solve the equation
Answer = -47,328 (OD)