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
A) $44,100.
B) $45,000.
C) $45,900.
D) $62,100.

Question

Quizplus · Accepted Answer

Starting balance: $54,000
Outstanding checks: -$15,000
Deposit in transit: +$6,000
Erroneous charge: +$900 (note that the question states the bank charged the account, so we ADD this to the balance)
Correct balance: $54,000 - $15,000 + $6,000 + $900 = $45,900

If the Month-End Bank Statement Shows a Balance of $54,000