BACHELOR OF BUSINESS ADMINISTRATION

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BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In preparing its bank reconciliation for the month of April 2020, Leno, Inc. has available the following information.Balance per bank statement, 4/30/20 RM76, 800NSF check returned with 4/30/20 bank statement 940Deposits in transit, 4/30/20 9, 000Outstanding checks, 4/30/20 9, 300Bank service charges for April 60What should be the adjusted cash balance at April 30, 2020?
A
RM75, 100.
B
RM75, 800.
C
RM75, 920.
D
RM76, 500.
Explanation: 

Detailed explanation-1: -Deposits in transit would be added to the balance per bank statement in a bank reconciliation. Deposits in transit refer to the cash and checks that are received by the company but are not yet deposited in the bank as of the ending date of the bank statement.

Detailed explanation-2: -In a bank reconciliation, the most common reconciling items are: Deposits in transit. Deposits in transit are deposits made after the bank statement was issued but have already been recorded in the books. Outstanding checks.

Detailed explanation-3: -The bank reconciliation statement is prepared by the business enterprises.

Detailed explanation-4: -Adjust the balance on the bank statements to the corrected balance. For doing this, you must add deposits in transit, deduct outstanding checks and add/deduct bank errors. Deposits in transit are amounts that are received and recorded by the business but are not yet recorded by the bank.

There is 1 question to complete.
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