a) prepare the genral journal entries necessary to update the Bank account in the general ledger for Nov 2017\ b) prepare the bank reconcilation as at 30 Nov 2017
a) prepare the genral journal entries necessary to update the Bank account in the general ledger for Nov 2017\ b) prepare the bank reconcilation as at 30 Nov 2017
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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a) prepare the genral
b) prepare the bank reconcilation as at 30 Nov 2017
Transcribed Image Text:Question 2:
Laura is the owner of Floral Limited, a boutique florist shop. She was given advice by her
accountant friend Ken regarding good internal controls for cash. He suggested one way that
she can ensure that her cash is accurate and up to date is to prepare a bank reconciliation at the
end of each month. Laura would like you to help her. She asks you to prepare a bank
reconciliation for November 2017 using the following information.
General Ledger - Floral Limited
Bank
Date
Explanation
Ref.
Debit
Credit
Balance
($)
Debit (Dr) /
Credit (Cr)
($)
2017
November
1
Balance
5,314 Dr
1
Deposit
1,500
6,814 Dr
3
Cheque #800
1,250
5,564 Dr
Cheque #801
190
5,374 Dr
8.
Cheque #802
112
5,262 Dr
Deposit
2,100
7,362 Dr
13
Cheque #803
825
6,537 Dr
20
Deposit
310
6,847 Dr
28
Cheque #804
594
6,253 Dr
28
Deposit
220
6,473 Dr
Transcribed Image Text:Bank of Kiwi
Bank Statement - Floral Limited
30 November 2017
Balance
Cheques and
Debit (Dr) /
Date
Withdrawls
Deposits
($)
Credit (Cr)
2017
Explanation
($)
($)
Oct 31
Balance
6,512 Cr
Nov 1
Deposit
1,500
8,012 Cr
Cheque #800
Cheque #801
Cheque #802
6.
1,250
6,762 Cr
6
190
6,572 Cr
8
112
6,460 Cr
9
Deposit
2,100
8,560 Cr
10
NSF Cheque
200
8,360 Cr
10
NSF Fee
70
8,290 Cr
Cheque #803
Deposit
14
852
7,438 Cr
20
250
7,688 Cr
23
EFT – Energise
170
7,518 Cr
28
Cheque #799
722
6,796 Cr
30
Bank charges
26
6,770 Cr
Additional information:
1.
On October 31, there were two outstanding cheques: #795 for $476 and #799 for
$722.
2.
Bank of Kiwi made a posting error to the bank statement: check #803 was issued
for $825, not $852.
3. The deposit made on November 20th was for $250 that Laura received for
teaching a floral arrangement class. Laura made an error in recording this
transaction as a deposit for $310 in the General Ledger.
4. The electronic funds transfer (EFT) was for Laura's utilities expense.
5. The NSF cheque fund reversal in November 2017 related to David Wilson.
Laura received the cheque for $200 and deposited it in October 2017 for a floral
bouquet that was sold to David. Laura contacted David, and he assured her that
she will receive a replacement cheque in the mail in December 2017 for the
outstanding amount of the invoice and the NSF bank charge.
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