The balance on LMN’s cash account at 31 December 20X6 is $108,000 (debit) On performing the monthly bank reconciliation the following is discovered.

The balance on LMN’s cash account at 31 December 20X6 is $108,000 (debit) On performing the monthly bank reconciliation the following is discovered.

• a payment of $2,000 made to a supplier has not yet appeared on the bank statement,

• an automated receipt from a customer for $5,000 has not yet been recorded in the cash book, and

• a pigment to a supplier of $1,500 was incorrectly recorded in the cash book as $1,050

The balance showing on the bank statement at 31 December 20X6 is
A . $111,450
B . $101,450
C . $114,550
D . $104,550

View Answer

Answer: A