The bank statement on 31 October 20X7 showed an overdraft of $800. On reconciling the bank statement, it was discovered that a cheque drawn by your company for $80 had not been presented for payment, and that a cheque for $130 from a customer had been dishonoured on 30 October 20X7, but that this had not yet been notified to you by the bank. What is the correct bank balance to be shown in the statement of financial position at 31 October 20X7?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The bank statement on 31 October 20X7 showed an overdraft of $800. On reconciling the bank
statement, it was discovered that a cheque drawn by your company for $80 had not been presented for
payment, and that a cheque for $130 from a customer had been dishonoured on 30 October 20X7, but
that this had not yet been notified to you by the bank.
What is the correct bank balance to be shown in the statement of financial position at 31 October
20X7?
Transcribed Image Text:The bank statement on 31 October 20X7 showed an overdraft of $800. On reconciling the bank statement, it was discovered that a cheque drawn by your company for $80 had not been presented for payment, and that a cheque for $130 from a customer had been dishonoured on 30 October 20X7, but that this had not yet been notified to you by the bank. What is the correct bank balance to be shown in the statement of financial position at 31 October 20X7?
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