The bank statement reports an overdraft of £17,455 as at 27 May 2012. As at that date cheques to the value of £14,280 have not been presented for payment and deposits amounting to £39,450 await clearance. If other circumstances are as described in each of the following situations, ascertain the bank balance that would be reported in the Cash Book, prior to correcting what has been stated below:

(a) A cheque for £12,480 written in favour of Guy Soloman, a supplier, has been entered in the Cash Book as £12,840, and an automated credit from Niel Tudor, a customer, for £3,500 is yet to be recorded in the Cash Book

(b) The Cash Book fails to record the dishonour of a cheque for £22,500 from Moss, a customer, £18 charged as bank commission and £17,500 collected by the bank on a dividend mandate

(c) A credit balance of £7,240 at bank has been carried forward from one folio of the Cash Book to the next as a debit balance and £500 drawn from the ATM (cash machine) has not been entered in the Cash Book

(d) A cheque for £6,500 drawn in favour of Maria Sayes, a trade payable, was lost and replaced by another. Apart from entering both cheques as credits in the Cash Book no other entry has been made

Transcribed Image Text:

x £3,855 y £4,655 z £11,655 o/d