Your firm's ledger shows a balance of $1 million which reflects today's $75,000 deposit and a cheque for $50,000 that went out in yesterday's mail.What is the bank's ledger balance for your account?

Question

Quizplus · Accepted Answer

The bank's ledger balance for the account would be the company's balance minus the availability float (the $75,000 deposit which has not yet cleared) plus the payment float (the $50,000 cheque which has not yet been deducted from the account). Therefore, the bank's ledger balance for the account would be $1,000,000 - $75,000 + $50,000 = $975,000. The correct choice is B.

Your Firm's Ledger Shows a Balance of $1 Million Which