Calculate the correct balance of the Bank Account in the General Ledger on 31 July 2016 - NSC Accounting - Question 1 - 2017 - Paper 1

To determine the correct balance of the Bank Account, we start with the provisional balance and adjust it with the outstanding items:

1. Start with the provisional bank balance:

   $R16,785$

2. Adjust for Cheque No. 186:

   $R16,785 + R450 = R17,235$

3. Add interest income:

   $R17,235 + R285 = R17,520$

4. Deduct bank charges:

   $R17,520 - R950 = R16,570$

5. Correct for the erroneous Cheque No. 374:

   $R16,570 - R3,600 = R12,970$

6. Deduct the theft of cash:

   $R12,970 - R37,800 = -R24,830$

Therefore, the correct bank balance is $R24,830$, which indicates that the balance is unfavourable.