Hi All, I really need some desperate help please.... and i come to you guys as you're much more helpful than my tutor!
I'm going to do paper BA4 tomorrow - i've done 2 mock papers, and have give through all the incorrect answers thati've got and correct them. However, there is one question on Bank Reconciliation that i just don't understand how to get the answer?!?!?
The question goes as follows:
After working through a bank statement, ticking off like items & updating the cash book - which now has a credit balance of £315, the following are outstanding:
Unpresented cheques - £950
Receipts not cleared - £373
What will be the balance on the statement?
I know that the correct answer is 262 BUT what i'm failing to understand is the principle behind it - from my understanding, you subtracted unpresented cheques, and added on outstanding lodgements (receipts)?!?!?
It seems in this instance, you have to add back the unpresented cheque and subtract the lodgement:
Balance (315)
Receipts - 373
= (688)
Cheques +950
= 262
If somebody could spare the time to help me out here, i would be more grateful than you'd ever know!
Thank you so much!
Emma x
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