Joined: 09 Jan 2009
Online Status: Offline Posts: 355
Posted: 20 Sep 2010 at 14:12 | IP Logged
The following information pertains to Grey Co. at December 31, 1993: Checkbook balance $12,000 Bank statement balance 16,000 Check drawn on Grey's account, payable to a vendor, dated and recorded 12/31/93 but not mailed until 1/10/94 1,800 On Grey's December 31, 1993, balance sheet, what amount should be reported as cash?
ans is $13800.
my qn is why check book balance is considered instead of Bank stmt balance? what is the difference between these two? sorry for asking such a basic qn. Thanks!
Joined: 19 May 2010 Location: United States
Online Status: Offline Posts: 22
Posted: 20 Sep 2010 at 16:34 | IP Logged
The reason you would use check book balance is because it is taken in all of the outstanding checks, deposit in transit, ect. If you use bank balance that statement balance wouldnt include the above information.
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Topic: cash balance
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