El Greco Inc's month-end bank statement shows a balance of €46,000, 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

Quizplus · Accepted Answer

The adjusted bank balance is calculated by adding the deposit in transit (€2,500) and the erroneously charged check (€500) to the bank statement balance (€46,000), and then subtracting the outstanding checks (€11,000). This results in an adjusted balance of €38,000.

El Greco Inc's Month-End Bank Statement Shows a Balance of €46,000