According to Lettice Corporations records, the bank account is overdrawn by $2600, yet the balance shown on

Question:

According to Lettice Corporation’s records, the bank account is overdrawn by $2600, yet the balance shown on the bank statement is only $1200 overdrawn. Assuming that no errors have been made by Lettice s accountants or the bank, what could account for this difference?

a. Bank interest of $1400 was charged by the bank.

b. Customer cheques totalling $1400 were deposited into the bank by Lettice.

c. Cheques not yet presented to the bank for payment have been posted to the cash ledger account for $1400.

d. A $1400 increase in Lettice’s overdraft facility.

ACCA adaptedLO1. 

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: