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

Since the cheque has not yet been presented for payment, it means the bank's balance (overdraft in this case) does not reflect this outgoing amount. Therefore, to reconcile, you would add the cheque amount back to the bank statement balance to reflect the true overdraft amount after accounting for the cheque.

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