Storybrook Ltd had an unadjusted ledger bank balance at 31 July of $17 000 Dr. The bank statement for the month shows a balance of $28 082 Cr. The bank statement also shows bank fees and charges of $138 and direct deposits from customers paid into the bank of $4500. Deposits not yet credited are $3 600 and unpresented cheques are $10 320. What is the cash at bank ledger balance at 31 July?

Question

Quizplus · Accepted Answer

Starting with the unadjusted ledger balance of $17 000 Dr, we need to make adjustments based on information from the bank statement:

1) Add direct deposits from customers: $17 000 Dr + $4500 Cr = $21 500 Cr

2) Subtract bank fees and charges: $21 500 Cr - $138 Dr = $21 362 Cr

3) Adjust for deposits not yet credited: $21 362 Cr - $3600 Dr = $17 762 Cr

4) Adjust for unpresented cheques: $17 762 Cr - $10 320 Dr = $7456 Cr

Therefore, the cash at bank ledger balance at 31 July is $21 362.

Storybrook Ltd Had an Unadjusted Ledger Bank Balance at 31