Solution 8.5
In this question:
Opening balances don’t agree but can be reconciled €320 (opening statement balance) + €730 (1st Feb lodgment) – €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 book
No errors in the cash book to correct
5 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 lodgments |
|
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) |