Calculate the correct balance of the Bank Account in the General Ledger on 31 July 2016 - NSC Accounting - Question 1 - 2017 - Paper 1

To determine the correct balance, we start with the provisional balance of R16 785. We must adjust this figure by adding and subtracting the relevant items:

• Add:

  • Cheque No. 186: + R450
  • Interest income: + R285

• Subtract:

  • Bank charges: - R950
  • Correction Cheque No. 374: - R3 600
  • Theft of cash: - R37 800

Calculating the correct balance:

$$Correct ext{ Bank balance} = Provisional ext{ Bank balance} + ext{Income} - ext{Expenses}$$

Substituting in our values:

$$Correct ext{ Bank balance} = R16 785 + R450 + R285 - R950 - R3 600 - R37 800 = -R24 830$$