Question

A company bank statment show as $1430 direct debit and $706 investment income not recorded in the cashbook . the bank statement doesnot show customer's cheque for $1750

entered in the cashbook on the last day of the accounting period
If the cashbook shows a credit balance of $1220 what balance appears on the bank statement?
A. $194 overdrawn
B.1254 overdrawn
C.2246 overdrawn
D.3694 overdrawn

Answer 1

Answer: A. $194 withdrawn

Explanation: 1220+ (1430-706)= 1944-1750= -194