22.2XWilliam Kelly's cash book on 28 February 2007 showed a balance at bank of $456.48. On attempting a reconciliation with his bank statement, the following matters were discovered. (i) A payment from B. Green to W. Kelly of $40 by direct bank transfer had not been recorded in the cash book. (ii) Cheques drawn but not presented to the bank were: A. Roe, $21.62; C. Mils, $36.55. (iii) A paying-in slip dated 27 February 2007 totalling $372.31 was not credited by the bank until 1 March 2007. (iv) A standing order for $21.58 payable on 20 February 2007 for fire insurance had been paid by the bank but not entered in the cash book. (v) Bank charges $15 had not been entered in the cash book. (a) Open the cash book and make such additional entries as you consider necessary. (b) Prepare a statement reconciling your revised cash book balance with the balance shown by the

22.2XWilliam Kelly's cash book on 28 February 2007 showed a balance at bank of $456.48. On attempting a reconciliation with his bank statement, the following matters were discovered. (i) A payment from B. Green to W. Kelly of $40 by direct bank transfer had not been recorded in the cash book. (ii) Cheques drawn but not presented to the bank were: A. Roe, $21.62; C. Mils, $36.55. (iii) A paying-in slip dated 27 February 2007 totalling $372.31 was not credited by the bank until 1 March 2007. (iv) A standing order for $21.58 payable on 20 February 2007 for fire insurance had been paid by the bank but not entered in the cash book. (v) Bank charges $15 had not been entered in the cash book. (a) Open the cash book and make such additional entries as you consider necessary. (b) Prepare a statement reconciling your revised cash book balance with the balance shown by the

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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On 30th June, 2015, D’s Cash Book showed that he had an overdraft of $ 300 on his Current Account at the bank. On checking the Cash Book with the bank statement you find the following: (a) Cheques drawn amounting to $ 500 had been entered in the Cash Book but had not been Presented; (b) Cheques received, amounting to $ 400, had been entered in the Cash Book but had not been credited by the bank ; (c) On instructions from D the bank had transferred interest, $ 60, from his deposit account to his current account recording the transfer on 5th July 2015. This amount had, however, been credited in the Cash Book as on 30th June, 2015. (d) Bank charges, $ 35, shown in the Bank statement had not been entered in the Cash Book; (e) The payment side of the Cash Book had been undercast by $ 10 ; (f) Dividends amounting to $ 200 had been paid direct to the Bank and not entered in the Cash Book ; (g) A cheque of $ 50 drawn on deposit account had been shown in…
The Cash account of ReeseCorporation had a balance of $3,540 at October 31, 2018. Included were outstanding checkstotaling $1,800 and an October 31 deposit of $300 that did not appear on the bank statement.The bank statement, which came from Turnstone State Bank, listed an October 31 balance of$5,570. Included in the bank balance was an October 30 collection of $600 on account froma customer who pays the bank directly. The bank statement also showed a $30 service charge,$10 of interest revenue that Reese earned on its bank balance, and an NSF check for $50.Prepare a bank reconciliation to determine how much cash Reese actually had at October 31.
The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, "I don't have time." You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, Current Year, bank statement and the April ledger account for cash showed the following (summarized): Balance, April 1, Current Year Deposits during April Interest collected Checks cleared during April NSF check-A. B. Wright Bank service charges BANK STATEMENT Checks Deposits Balance $32,200 $36,500 68,700 1,280 69,980 $46,400 23,580 250 23,330 170 23,160 23,160 Balance, April 30, Current Year Cash (A) April 1 Debit Balance April Deposits Credit 24,000 April Checks written 42,200 44,600 A comparison of checks written before and during April with the checks cleared through the bank showed outstanding checks at the end of April of $6,400 (including $4,600 written before and $1,800 written during April). No deposits in transit were carried over from March,…
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On March 31, 1998. the Cash Book of Henry showed a Bank balance of $ 4,850. While verifying with the Pass Book, the following facts were noted: (i) Cheques sent in for collection before March 31, 1998, and not credited by the bank amounted to $ 845. (ii) Cheques issued before March 31, 1998, but not presented for payment amounted to $ 885. (iii) The banker has charged a sum of $ 100 towards incidental charges and credited interest $ 250. (iv) The banker has given a wrong credit for $ 250. (v) Mr. Neon has paid into bank directly a sum of $ 300 on March 28, 1998, which has not been entered in the cash book (vi) A cheque for $ 200 sent for collection and returned unpaid has not been entered in the cash book. Prepare a Bank Reconciliation Statement.