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Answer to Accounting Test Question No 3: Company A Bank Reconciliation as at 31 st July 2006 $ Balance as per bank statement at 31 st July 2006 55,262 Add: Deposits in transit / Uncredited deposits 1,300 56,562 Deduct: Unpresented cheques Check No 6661 dated July 20th $380 6662 dated July 27th 1,050 Adjusted Bank balance at 31 st July 2006 55,512 Balance as per Bank account at 31 st July 2006 55,597 Add: Check no 6666 (Overstated amount) 180 55,777 Deduct: Bank service charge $55 Dishonored check $210 265 Adjusted Cash balance at 31 st July 2006 55,512 |
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Answer to Accounting Test Question No 4: Part 1 : Preparation of Bank Reconciliation Statement: Company XYZ Bank Statement As At 31 st August 2006 $ Step 1: Bank Balance to Corrected Balance Balance per Bank Statement $74,674 Add: Deposits Outstanding 8,200 Deduct: Checks Outstanding (8,420) $74,454 Step 2: Book Balance to Corrected Balance Balance per Book $78,304 Service charges (50) Automatic monthly transfer (2,000) Error in recording cash disbursement ($2,000-200) (1,800) Corrected Cash Balance $74,454
Part B: To record credits to cash revealed by the bank reconciliation. Miscellaneous charges ( bank service charges) $50 Cash-savings account $2,000 Accounts payable $1,800 Cash $3,850
[PS: Each adjustment affecting the book balance required journal entries None of the adjustments to the bank balance require entries. ]
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