2. At 31 March 2019, the cash book of Company 2 showed a debit balance of £56. An examination of the bank statements and the accounting records of the company revealed the following: On 30 March 2019, the bank wrote to Company 2 stating that a cheque of £360 received from a customer and banked on 25 March 2019 had bounced and had been dishonoured. This letter was only received by Company 2 on 2 April 2019. Bank charges of £460 appeared on the bank statement on 30 March 2019 but the company was unaware of this transaction. Receipts of £9,215 banked on 31 March 2019 were not cleared through the banking system until April 2019, while payments totalling £19,401, issued by the company in March 2019 were also not cleared through the banking system until April 2019. What was the balance appearing on the bank statement at 31 March 2019? A BCD £9,422 £(10,950) £9,310 £10,142

2. At 31 March 2019, the cash book of Company 2 showed a debit balance of £56. An examination of the bank statements and the accounting records of the company revealed the following: On 30 March 2019, the bank wrote to Company 2 stating that a cheque of £360 received from a customer and banked on 25 March 2019 had bounced and had been dishonoured. This letter was only received by Company 2 on 2 April 2019. Bank charges of £460 appeared on the bank statement on 30 March 2019 but the company was unaware of this transaction. Receipts of £9,215 banked on 31 March 2019 were not cleared through the banking system until April 2019, while payments totalling £19,401, issued by the company in March 2019 were also not cleared through the banking system until April 2019. What was the balance appearing on the bank statement at 31 March 2019? A BCD £9,422 £(10,950) £9,310 £10,142

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

2. At 31 March 2019, the cash book of Company 2 showed a debit balance of £56.
An examination of the bank statements and the accounting records of the
company revealed the following:
On 30 March 2019, the bank wrote to Company 2 stating that a cheque of £360
received from a customer and banked on 25 March 2019 had bounced and had
been dishonoured. This letter was only received by Company 2 on 2 April 2019.
Bank charges of £460 appeared on the bank statement on 30 March 2019 but
the company was unaware of this transaction. Receipts of £9,215 banked on
31 March 2019 were not cleared through the banking system until April 2019,
while payments totalling £19,401, issued by the company in March 2019 were
also not cleared through the banking system until April 2019.
What was the balance appearing on the bank statement at 31 March 2019?
A
B
C
D
£9,422
£(10,950)
£9,310
£10,142

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