acc. simple bank recon qn..

• Fireindahouse

  10 Nov 07, 01:50

  the back statement of a business shows an overdraft of $2000. There are uncredited cheques of $2800 and unpresented cheques of $550.what is the balance of the cash book??
  
  1.$250credit
  2.$250Debit
  3.$4250credit
  4.$4250debit
• Stoat

  10 Nov 07, 01:55

  Originally posted by Fireindahouse:

  the back statement of a business shows an overdraft of $2000. There are uncredited cheques of $2800 and unpresented cheques of $550.what is the balance of the cash book??
  
  1.$250credit
  2.$250Debit
  3.$4250credit
  4.$4250debit

  2. $250 debit
• Darkness_hacker99

  10 Nov 07, 01:59

  Originally posted by Fireindahouse:

  the back statement of a business shows an overdraft of $2000. There are uncredited cheques of $2800 and unpresented cheques of $550.what is the balance of the cash book??
  
  1.$250credit
  2.$250Debit
  3.$4250credit
  4.$4250debit

  Answer: 2
  
  
• ^tamago^

  10 Nov 07, 23:12

  How come it's $250 Debit when it's +$250?
• Darkness_hacker99

  10 Nov 07, 23:29

  Originally posted by ^tamago^:

  How come it's $250 Debit when it's +$250?

  $250 Debit, means:
  
  
  As you can see from the Cashbook a/c, it's $250 in the Debit side.
  
  A figure in the Debit side of an "Asset" account means there's a positive figure.
• ^tamago^

  10 Nov 07, 23:36

  Originally posted by Darkness_hacker99:

  A figure in the Debit side of an account means there's a positive figure.

  ok got it thanks.
• Darkness_hacker99

  10 Nov 07, 23:38

  Originally posted by ^tamago^:

  ok got it thanks.

  I added a word "asset" next to the account. There are many types of a/c and not all figures in debit side are positive.
• gunner77

  12 Nov 07, 00:02

  ans = 2
  
  2000-2800 = (800)
  (800)-550 = 250