Solution 8.4
In this question:
Opening balances don’t agree but can be reconciled €383 (opening statement balance) + €864 (2nd Nov lodgment) – €632 (CQ 80264) – €146 (CQ 80263) = €469 (opening cash book balance). €864, €632 and €146 can be ignored as they related to last months reconciliation.
5 items on the bank statement not yet recorded in the cash book
2 errors in the cash book to correct
5 outstanding cash book items for the reconciliation
The closing balance on the cash book was on the debit side this should be brought down on the credit side when getting the cash book ready for the corrections.
|
DR |
Cash Book |
CR |
||
|
|
€ |
|
€ |
|
|
CT – ABC Ltd |
950 |
Bal b/d |
340 |
|
|
|
|
DD – Bord Gais |
398 |
|
|
|
|
DD – Ryan Rental |
725 |
|
|
|
|
Standing order – 006 |
465 |
|
|
|
|
Bank charges |
43 |
|
|
|
|
Lodgment error |
60 |
|
|
Bal c/d |
1,090 |
Error CQ 80270 |
9 |
|
|
|
2,040 |
|
2,040 |
|
|
|
|
Bal b/d |
1,090 |
|
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 |
|
328 |
|
Add outstanding lodgments |
|
|
|
30th Nov |
859 |
|
|
30th Nov |
95 |
954 |
|
Less un-presented cheques |
|
|
|
Cheque 80268 |
1,246 |
|
|
Cheque 80272 |
266 |
|
|
Cheque 80273 |
860 |
(2,372) |
|
|
|
|
|
Balance per cash book |
|
(1,090) |