Based on the following information, how much is the correct cash in bank assuming the cash balance per book is P500,000? NSF check 100,000Note collection 200,000Deposit in transit 30,000Group of answer choices730,000700,000800,000600,000
Question
Based on the following information, how much is the correct cash in bank assuming the cash balance per book is P500,000? NSF check 100,000Note collection 200,000Deposit in transit 30,000Group of answer choices730,000700,000800,000600,000
Solution
To calculate the correct cash in bank, we need to adjust the cash balance per book with the given transactions. Here are the steps:
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Start with the cash balance per book, which is P500,000.
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Subtract the NSF check amount. NSF stands for Non-Sufficient Funds, which means a check that cannot be honored because insufficient funds are available in the account. So, subtract P100,000 from P500,000. This gives you P400,000.
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Add the note collection. This is an amount that has been collected on behalf of the company, so it increases the cash balance. Add P200,000 to P400,000. This gives you P600,000.
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Add the deposit in transit. This is an amount that has been deposited but not yet recorded by the bank, so it also increases the cash balance. Add P30,000 to P600,000. This gives you P630,000.
So, the correct cash in bank is P630,000. None of the provided answer choices match this calculation.
Similar Questions
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