The cash book has a balance of £800 overdrawn. Cheques for £5,000 have been issued, but do not yet appear on the bank statement. Receipts of £3,000 are in the cash book, are lodged, but are not yet cleared in the bank hence are not on the bank statement.
What is the balance on the bank statement?

Question

Quizplus · Accepted Answer

The cash book shows £800 overdrawn. Adding the uncleared receipts of £3,000 gives £2,200 overdrawn. Subtracting the unpresented cheques of £5,000 results in a £2,800 overdrawn balance on the bank statement.

The Cash Book Has a Balance of £800 Overdrawn