K.R Solutions
K.R Solutions' Cash Book at 30th November 2014 showed an overdrawn position of £3,630 which did not match with her bank statement which shown an overdrawn balance of £3,078. Detailed examination of the two records revealed the following:
The debit side of the cash book had been undercast by £300.
A cheque for £1,560 in favour of Z Suppliers Ltd., had been omitted by the bank from its statement, the cheque having been debited to another customer's account.
A lodgement of £1080 on 30th November had not been credited by the bank.
Interest amounting to £228 had been debited by the bank but not entered in the cash book.
Required:
Reconcile the balance of the cash book and bank statement to the corrected bank balance.
Reconcile the cash book balance to the balance of the bank.
Wheels Ltd
Wheels Ltd has received his bank statement for the year to 30 September 2014. At the date, his balance at the bank amounted to £14,130 whereas his own cash book showed a balance of £20,000. His accountant investigated the matter, and discovered the following discrepancies:
Hay had brought down his opening cash book balance of £6,585 as a debit balance instead of as a credit balance.
Hay had entered a payment of £560 in his cash book as £650.
Cheques drawn by Hay in July 2014 to the value of £7,210 had not been presented to the bank.
One of Hay's customers had agreed to settle their debts £450 by direct debit though nothing was entered in the cash books yet. Unfortunately, the bank had credited the direct debit to another customer's account.
Required:
Make any necessary entries in the cash book as at 30 September 2014.
Prepare a bank reconciliation statement as at 30 September 2014.
Oliver Spence
Oliver Spence, a sole trader, received a bank statement for the month of May as follows:
For the corresponding period, Oliver Spence's own records contained the following bank
Required:
Prepare the bank reconciliation statement as at 31 May 2014 from the cash book and the bank statement to the corrected bank balance.
Workings: (reconciliation of beginning balances of cash book and bank statement)
Oliver Spence continued his business in June 2014 and his bank account was given as follows:
|
May
|
|
Dr.
|
Cr.
|
Balance
|
|
|
1
|
Opening balance
|
|
|
85
|
|
|
3
|
123456
|
150
|
|
65
|
O/D
|
|
9
|
123450
|
42
|
|
107
|
O/D
|
|
14
|
Sundry credit
|
|
210
|
103
|
|
|
18
|
Interest
|
24
|
|
79
|
|
|
20
|
Sundry credit
|
|
350
|
429
|
|
|
22
|
123457
|
220
|
|
209
|
|
|
23
|
123448
|
100
|
|
109
|
|
|
24
|
Standing order - rent
|
10
|
|
99
|
|
|
25
|
Sundry credit
|
|
531
|
630
|
|
|
26
|
Credit transfer - Mills
|
|
25
|
655
|
|
|
28
|
423460
|
100
|
|
555
|
|
|
30
|
123459
|
405
|
|
150
|
|
|
31
|
Closing balance
|
|
|
150
|
|
The corresponding bank statement for the month of June 2014 was:
|
May
|
|
|
£
|
May
|
|
|
£
|
|
|
14
|
Cheque from G. Smith
|
210
|
|
1
|
Balance b/d
|
|
57
|
|
|
20
|
Cash Sales
|
350
|
|
3
|
Electricity
|
123456
|
150
|
|
|
25
|
Cheque from F Jones
|
410
|
|
22
|
Wages
|
123457
|
222
|
|
|
25
|
Cheque from R Black
|
121
|
|
23
|
Purchases
|
123458
|
415
|
|
|
31
|
Cheque from W Wayne
|
196
|
|
30
|
Rent
|
123459
|
405
|
|
|
31
|
Balance c/d
|
|
9
|
|
31
|
Purchases
|
123460
|
|
47
|
|
|
|
|
1 296
|
|
|
|
|
1 296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Required:
Prepare the bank reconciliation statement as at 31 May 2014 from the cash book and the bank statement to the corrected bank balance.
Workings: (reconciliation of beginning balances of cash book and bank statement)
|
The beginning balance of the bank statement
|
£ 85
|
|
Less: Unpresented cheques - last month (42+100)
|
142
|
|
The beginning balance of the cash book
|
(57) O/D
|
|
|
|
|
|
Attachment:- Assignment.zip