ExpertMedium2 marksShort Answer
ACCA · Question 16 · Preparing a trial balance
Section A
Nautilus Marine's cash book shows a debit balance of $12,400. The bank statement shows a credit balance of $11,800.
Upon investigation, you discover:
- Bank charges of $150 have not been entered in the cash book.
- A cheque received from a customer for $800 was returned unpaid by the bank.
- Unpresented cheques amount to $2,350.
- Outstanding lodgements amount to $3,200.
What is the revised cash book balance? (Enter numbers only)
Section A
Nautilus Marine's cash book shows a debit balance of $12,400. The bank statement shows a credit balance of $11,800.
Upon investigation, you discover:
- Bank charges of $150 have not been entered in the cash book.
- A cheque received from a customer for $800 was returned unpaid by the bank.
- Unpresented cheques amount to $2,350.
- Outstanding lodgements amount to $3,200.
What is the revised cash book balance? (Enter numbers only)
How to approach this question
Start with the unadjusted cash book balance. Adjust for items that are on the bank statement but not in the cash book (bank charges, dishonored cheques). Unpresented cheques and outstanding lodgements adjust the bank statement balance, not the cash book.
Full Answer
Unadjusted cash book balance = $12,400 (debit/positive). Less: Bank charges ($150). Less: Dishonored cheque ($800). Revised cash book balance = $12,400 - $150 - $800 = $11,450.
Common mistakes
Adjusting the cash book for unpresented cheques or outstanding lodgements.
Practice the full ACCA FA — Financial Accounting Practice Exam 1
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