Sigma's bank statement shows an overdrawn balance of $10,368 at 30 June 2015. A check against the company's cash book revealed the following differences:
1. Bank charges of $4,716 have not been entered in the case book.
2. Lodgements recorded on 30 June 2015 but credited by the bank on 2 July $831.
3. Cheque repayments entered in cash book but not presented for payment at 30 June 2015 $375.
4. A cheque payment to a supplier of $550 charged to the account in June 2015 recorded in the cash book as a receipt.
Based on this information, what was the cash book balance before any adjustments? SUGGESTED SOLUTIONS
BANK STATEMENT
| $ | |
| Closing balance OD | (10,368) |
| Add Lodgements | 831 |
| Minus cheques not presented | (375) |
| Adjusted Bank balance OD | (9,912) |
| DEBIT | $ | CREDIT | $ |
| Opening balance OD | ??? | ||
| Bank charges | 4,716 | ||
| Error adjustment | 1,100 | ||
| Closing Balance | 9,912 |
Solve the equation
Answer = $4,096