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

To calculate the correct balance of the Bank Account as of 31 July 2016, start with the provisional bank balance and make the necessary adjustments:

1. Provisional Bank Balance: R16,785
2. Add Cheque No. 186: + R450
3. Add Interest Income: + R285
4. Subtract Bank Charges: - R950
5. Subtract Correction for Cheque No. 374: - R3,600
6. Subtract Theft of Cash: - R37,800

Calculating:

$ext{Correct Bank Balance} = 16,785 + 450 + 285 - 950 - 3,600 - 37,800$

This results in:

$ext{Correct Bank Balance} = R24,830$

The balance of R24,830 is unfavourable as it is a negative cash flow.