Obake Ltd’s cash ledger account shows a month end debit balance of $13 100.

The company’s bank statement, however, shows a different figure. Obake has identified four differences:

• Bank charges of $950 have been deducted during the last quarter, but not yet entered in the cash account.

• A cheque for $11 600 paid to a creditor has not been presented to the bank.

• A customers cheque for $6820 paid into the bank has not yet been cleared.

• Obake had forgotten that an annual direct debt of $1020 was due, and this has been taken from the account.

What is the balance of Obake’s bank statement at the end of the month?

a. $10 920

b. $11 130

c. $15 910

d. $17 880 ACCA adaptedLO1.