Question

The amount of cash to be reported on the balance sheet at June 30 is the

a.balance as of June 30 on the bank statement
b.total of the Cash column in the cash receipts journal as of June 30
c.adjusted balance appearing in the bank reconciliation for June 30
d.total of the Cash column in the cash payments journal as of June 30

Answer 1

Answer:

The answer is C.

Explanation:

It will not be proper to just choose the balance in the cash ledger or the one in the bank because the balance as per the cash ledger in the book might be different from the balance in the bank statement in the bank.

So to eliminate this differentiation, bank reconciliation needs to be done. After this reconciliation has been carefully done, the adjusted cash balance in the reconciliation will be used.