The cash records and the bank statement of Molus Company showed the following at the end of February 20A: Outstanding cheques at the end of January 20A,$8,000; cheques written by Molus Company during February 20A,$50,000; and cheques cleared by the bank during February 20A,$54,000.Therefore,the outstanding cheques at the end of February 20A,amounted to which of the following?

Question

Quizplus · Accepted Answer

To find the outstanding cheques at the end of February 20A, we need to subtract the cheques cleared by the bank during February 20A from the cheques written by Molus Company during February 20A and then add the outstanding cheques at the end of January 20A. 
$50,000 - $54,000 + $8,000 = $4,000
Therefore, the outstanding cheques at the end of February 20A amounted to $4,000, which is choice B.

The Cash Records and the Bank Statement of Molus Company