Question

A month-end bank statement shows a balance of $26,000, outstanding checks are $10,000, a deposit of $2,000 was in transit at month end, and a check for $200 was erroneously charged by the bank against the account. What is the correct balance in the bank account at month end?

Answer 1

$18,200

Step-by-step explanation:

This is a question on bank reconciliation. The process for reconciling a bank statement when using the 'balance as per bank statement' is to:

1. Less: Unpresented Checks and

2. Add: Uncredited checks

Therefore:

Balance as per bank statement..............................26,000

Less: Unpresented checks (outstanding).............(10,000)

Add: Uncredited checks (deposits)...........................2,000

Adjusted balance as per statement.........................18,000

Add back subtracted amount due to wrong check...200

Correct balance in bank account at month end....18,200

Answer 2

The correct balance in the bank account at month end is $18200

Step-by-step explanation:

$26000- $10000 +$2000+$200=$18200