Answer-Company’s cash book shows ₹1,20,000 (CR) as at year-end. Bank statement shows ₹1,05,000 (CR)....

Here, we are correcting the cash book balance Starting balance per cash book 1,20,000 CR means positive balance. Deduct bank charges not recorded 1,20,000 2,000 1,18,000. The outstanding cheques and deposits in transit affect only the bank statement side, not the cash book correction. Final corrected cash book balance 1,18,000.

Question

Company’s cash book shows ₹1,20,000 (C

R as at year-end. Bank statement shows ₹1,05,000 (C
R . Outstanding cheques total ₹20,000 and deposits-in-transit stand at ₹10,000. Additionally, bank charged ₹2,000 as service charges not yet recorded in books. Determine the corrected cash book balance at year-end.