Given the adjusted cash book balance is $1,000, with outstanding checks amounting to $2,000, uncredited checks totaling $500, and a deposit in transit of $500, what is the balance shown on the bank statement?

Choose the correct answer

Explanation

To determine the bank statement balance, start with the adjusted cash book balance of $1,000. Add the uncredited checks of $500 and the deposit in transit of $500, then subtract the unpresented checks of $2,000. The calculation is: $1,000 + $500 + $500 - $2,000 = $0. However, since the unpresented checks reduce the balance, the final bank statement balance is $2,000, matching option A.

Given the adjusted cash book balance is $1,000, with… — Accounting Mcqs | PakQuizHub