Answered: The following information relates to C…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information relates to C at 30 June 20X3.

Balance per cash book – credit balance 4,300

Unpresented cheques 1,500

Bank charges not entered in the cash book 300

Receipts not yet credited by the bank 2,600

Dishonoured cheques not yet recorded in the cash book 500

What would be the balance shown on the bank statement at 30 June 20X3?

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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