Question

A month-end bank statement shows a balance of $52,000, outstanding checks of $8,000, an intransit deposit of $3,500, and a deduction error of $25 made by the bank against the account. What is the correct balance in the bank account at month end

Answer 1

Answer:

$56,552

Explanation:

A month-end bank statement shows a balance of $52,000, outstanding checks of $8,000, an intransit deposit of $3,500, and a deduction error of $25 made by the bank against the account.

The correct balance in the bank account at month end will be:

Balance as per bank statement....$52,000

Add: Outstanding Checks................$8,000

less: In transit deposit......................($3,500)

Add back: Deduction in error.................$52

Correct balance in  bank account $56,552