El Greco Inc'.s month-end bank statement shows a balance of €51,000, outstanding checks are €11,000, a deposit of €2,500 which was in transit at month end. In reconciling the bank statement, El Greco discovered that a check for €500 was erroneously charged by the bank against the company's account. The adjusted balance in the bank account at month end is

Question

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The adjusted bank balance is calculated as follows: Start with the bank statement balance of €51,000, add the deposit in transit of €2,500, subtract the outstanding checks of €11,000, and add back the erroneously charged check of €500. This results in an adjusted balance of €43,000.