In: Accounting
If the bank statement at the end of the month shows a
balance of IDR 360 million, checks are still in circulation IDR 120
million, deposits in transit worth IDR 40 million and checks worth
IDR 5 million are charged by the bank to the company account, what
is the correct balance of the bank account at the end of the
month?
A. IDR 275.000.000
B. IDR 285.000.000
C IDR 205.000.000
D. IDR 435.000.000
The correct option is (D.), i.e., IDR 435.000.000
According to the question,
Monthly end balance in the bank=IDR 360 million
Add: Cheque in circulation = IDR 120 million
Less: Deposit in transit = IDR 40 million
Less: charges charged by the bank= IDR 5 million
Bank balance at the end of the month = IDR 435 million
Therefore, the correct option is option D.