If the month-end bank statement shows a balance of $90,000, outstanding checks are $30,000, a deposit of $10,000 was in transit at month end, and a check for $1,250 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is
A) $68,750.
B) $71,250.
C) $51,250.
D) $108,750.

Question

Quizplus · Accepted Answer

Beginning balance = $90,000 
Outstanding checks = $30,000 
Add deposit in transit = +$10,000 
Subtract erroneously charged check = -$1,250

Correct balance = $90,000 - $30,000 + $10,000 - $1,250 = $71,250

If the Month-End Bank Statement Shows a Balance of $90,000