Storyboard Ltd had an unadjusted bank account ledger balance at 31 May of $800 Dr.The bank statement at the same date showed a balance of $1090 Cr.Bank service charges for the month were $10 and outstanding cheques totalled $400.The bank statement revealed that the bank had collected dividends for the firm of $50 and a deposit of $150 is not yet recorded on the statement.What is the corrected bank account ledger balance at 31 May?

Question

Quizplus · Accepted Answer

The corrected bank account ledger balance is calculated as follows: Start with the unadjusted ledger balance of $800 Dr. Add the bank-collected dividends of $50 and subtract the bank service charges of $10. This gives $840. The outstanding cheques and unrecorded deposit do not affect the ledger balance.

Storyboard Ltd Had an Unadjusted Bank Account Ledger Balance at 31