If the month-end bank statement shows a balance of $51,000, outstanding cheques are $14,000, a deposit of $3,000 was in transit at month end, and a cheque for $800 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 in the bank account at month end can be calculated as follows:

Balance per bank statement: $51,000 
Less: Outstanding cheques: $14,000 
Adjusted balance: $37,000 
Add: Deposit in transit: $3,000 
Adjusted balance per books: $40,000 
Less: Erroneously charged cheque: $800 
Correct balance: $39,200

Therefore, the correct choice is A) $40,800.

If the Month-End Bank Statement Shows a Balance of $51,000