The bank statement of a business shows an overdraft of $10 000 at 31 March.In reconciling the account at that date indicate the treatment you would give to Cheque No.461 for $30 that was drawn on 25 March but had not yet been presented for payment.

Question

Quizplus · Accepted Answer

Cheque No.461 is an outstanding cheque, so it should be added to the bank statement balance in the bank reconciliation to reflect the true cash position.

The Bank Statement of a Business Shows an Overdraft of $10