Reference no: EM132765033

At the end of July 2019 the cashbook summary shows a balance of $28,000. Subsequently, the following discoveries were made:

1. The following cheques were issued by the business for $3,000, $4,000 and $7,000 respective and recorded in the cashbook however; the cheque for $4,000 was not presented to the bank until August 3, 2019.

2. A cheque for $1,000 was deposited on the 31st of July but was not credited to the bank statement until after July 31.

3. Four cheques were deposited for $10,400, $4,000, $2,000 and $6,400 respectively and recorded in the cash book. The cheque for $6,400 was credited in the bank statement on August 2, 2019.

Problem 1: What is the balance as per bank statement?

a. A favorable balance of $31,400

b. A favorable balance of $24,600

c. A bank over draft of $24,600

d. A bank over draft of $31,400