| |
Solution
8.5
In this question:
Opening balances dont agree but can be reconciled 320 (opening statement
balance) + 730 (1st Feb lodgement) 625 (CQ 96582) 175
(CQ 96583) = 250 (opening cash book balance). 730, 625 and 165
can be ignored as they related to last months reconciliation.4 items on
the bank statement not yet recorded in the cash bookNo errors in the cash
book to correct5 outstanding cash book items for the reconciliation
|
DR |
Cash Book |
CR |
|
|
|
|
|
|
Credit
transfer |
175 |
Bal
b/d |
2,705 |
|
|
|
Standing
order |
500 |
|
|
|
DD
Telecom |
130 |
|
Bal
c/d |
3,225 |
Bank
charges |
65 |
|
|
3,400 |
|
3,400 |
|
|
|
Bal
b/d |
3,225 |
| |
|
|
|
|
Note,
the closing balance in the corrected cash book represents an overdraft
because it is brought down on the credit side.
|
Bank reconciliation |
|
|
|
Bank
statement closing balance |
|
(2,840) |
|
Add
outstanding lodgements |
|
1,500 |
|
|
|
|
|
Less
un-presented cheques |
|
|
|
Cheque 96585 |
450 |
|
|
Cheque 96591 |
320 |
|
|
Cheque 96593 |
480 |
|
|
Cheque 96594 |
635 |
(1,885) |
|
|
|
|
|
Balance
per cash book |
|
(3,225) |
|