Flynn and Associates had an unadjusted bank account ledger balance at 30 November of $3552 Dr. The bank statement at the same date showed a balance of $3460 Cr. Bank service charges for the month were $22 and outstanding cheques totalled $630. The bank statement revealed that the bank had collected dividends for the firm of $450 and a deposit of $1150 is not yet recorded on the statement. What is the corrected bank account ledger balance at 30 November?

Question

Quizplus · Accepted Answer

Starting balance per bank statement: $3460
Add: Collected dividends: $450
Add: Deposit not yet recorded: $1150
Adjusted balance: $5060

Starting balance per ledger: $3552
Less: Outstanding cheques: $630
Adjusted balance: $2922

Adjusted bank balance: $5060 Cr
Adjusted ledger balance: $2922 Dr

To reconcile the balance, we need to find the difference between the two adjusted balances:

$5060 - $2922 = $2138 Cr

So, the corrected bank account ledger balance at 30 November is $3,980 (which is the ledger balance plus the excess amount of $2138 Cr). Hence, the correct answer is option C.

Flynn and Associates Had an Unadjusted Bank Account Ledger Balance