If the month-end bank statement shows a balance of $72,000, outstanding checks are $24,000, a deposit of $8,000 was in transit at month end, and a check for $1,000 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is

Question

Quizplus · Accepted Answer

Starting balance: $72,000 
Outstanding checks: -$24,000 
Adjusted balance: $48,000

Add deposit in transit: +$8,000 
Adjusted balance: $56,000

Subtract erroneously charged check: -$1,000 
Final balance: $55,000

Therefore, the correct balance in the bank account at month end is $55,000.

If the Month-End Bank Statement Shows a Balance of $72,000