If the month-end bank statement shows a balance of $75000 outstanding checks are $54000 a deposit of $15000 was in transit at month end and a check for $4000 was erroneously charged by the bank against the account the correct balance in the bank account at month end is

Question

Quizplus · Accepted Answer

The correct balance is calculated as follows: Start with the bank statement balance of $75000, add the deposit in transit of $15000, subtract the outstanding checks of $54000, and add back the erroneously charged check of $4000. This results in a correct balance of $40000.

If the Month-End Bank Statement Shows a Balance of $75000