If the month-end bank statement shows a balance of ¥360,000, outstanding checks are ¥120,000, a deposit of ¥40,000 was in transit at month end, and a check for ¥5,000 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 = ¥360,000
Outstanding checks = ¥120,000
Adjustment for deposit in transit = +¥40,000
Adjustment for erroneously charged check = +¥5,000

The adjusted balance would be:
¥360,000 - ¥120,000 + ¥40,000 + ¥5,000 = ¥285,000

Therefore, the correct balance in the bank account at month-end is ¥285,000.

If the Month-End Bank Statement Shows a Balance of ¥360,000