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.
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