Question

You have $141,000 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $43,000. a. Does this create a disbursement float or a collection float? What is your available balance? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) What is your book balance? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Disbursement float a. Type of float b. Available balance C. Book balance

Answer 1

Ans.

a) Does this create a disbursement float or a collection float?

This will create Disbursement float because we have write a check.

b) What is your available balance?

Due to Disbursement float our checking balance will remain same so,our available balance will be $ 141,000

c) What is your book balance?

Due to Disbursement float our checking balance in bank will not decrease but our book account balance will include check write so our effective balance in book will be ($141,000 - $ 43,000) = $ 98,000