Rugare Stores' updated Cash Book showed an overdraft of $2 200 on 31 January 2010. Uncredited cheques of $1 800 and unpresented cheques of $1 500 were outstanding. What overdraft balance should the Bank Reconciliation Statement show as per the Bank Statement?

Model answer

$2 500

Also accepted: 2500, 2 500

Explanation

$2 200 + $1 800 (uncredited cheques) - $1 500 (unpresented cheques) = $2 500.

Derived from ZIMSEC Principles of Accounts 7112/2 Paper 2, June 2014, Q2

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