Question

If the month-end bank statement shows a balance of $36,000, outstanding checks are $10,000, a deposit of $4,000 was in transit at month-end, and a check for $600 was erroneously charged by the bank against the account, the correct balance in the bank account at month-end is :

a) $29,400
b) $30,000
c) $30,600
d) $41,400

Answer 1

c) $30,600

Step-by-step explanation:

Bank statement balance = $36,000

Outstanding checks = ($10,000)

Deposit in transit as at month end = $4,000

Erroneous check charged = $600

Correct balance in the bank account = $36,000 - $10,000 + $4,000 + $600

= $30,600

The right option is c) $30,600