Question

If the month-end bank statement shows a balance of $54,000, outstanding checks are $15,000, a deposit of $6,000 was in transit at month end, and a check for $900 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is:

Answer 1

The answer is $45,900

Step-by-step explanation:

A bank reconciliation is the process of reconciling the balances in an entity's accounting records for a cash book account to the balance on the bank statement.

Balance as per bank --------$54,000

Add:

Deposit in transit--------------- $6,000

Error charged-----------------------$900

Subtract:

Outstanding checks are----$15,000

Correct balance----------------$45,900

Therefore, the correct balance in the bank account at month end is $45,900