Question

Cheyenne Corp. wrote checks totaling $33820 during October and $36928 during November. $32160 of these checks cleared the bank in October, and $36075 cleared the bank in November. What was the amount of outstanding checks on November 30?

Answer 1

Answer: Amount of outstanding checks on November 30 = $2,513

Step-by-step explanation:

GIVEN the following ;

October check total = $33,820

November check total = $36,928

October cleared checks = $32,160

November cleared checks = $36,075

To calculate amount of outstanding cheques:

Total checks issued :

$(33,820 + 36,928) = $70,748

Total checks cleared :

$(32,160 + 36,075) = $68,235

Outstanding checks:

(Total checks issued - total cleared checks)

$70,748 - $68,235 = $2,513

Outstanding checks may be reffered to as checks which have been sanctioned or issued by the payor ( account owner) but yet to be cleared or cashed by the individual or institution to which the check was addressed.

Answer 2

$2,513.

Step-by-step explanation:

Outstanding checks are those checks that are recorded in the company's books but the bank has yet to record them and update the bank balance. Since the bank balance will not be updated and it will show a greater balance, so while preparing Bank Statement Reconciliation, we have to deduct the amount of outstanding checks from the Bank account balance as per bank statement. The bank due to many reasons can be unable to clear the checks, the most common ones are workload, timing, etc.

In this case, we are required to calculate the amount of outstanding checks. The mathematics here is simply, add the total checks issued by the corporation and deduct the checks cleared by the bank from it.

⇒ Amount of outstanding checks on November 30 =

33, 820 + 36,928 - 32,160 - 36,075 = $2,513.