As the accountant of the popular Italian restaurant, Magical Sicily, you have been requested to assist the bookkeeper to prepare the bank reconciliation statement at 31 March 2019. The following information is provided: The bank balance as per the general ledger at 31 March 2019 is an R5 158 in overdraft. The bank balance as per the bank statement as at 31 March 2019 is a debit of R5 924. The following transactions were identified to be on the bank statement and were not accounted for by the bookkeeper: Bank charges amounted to R1 230. Interest was paid on the overdraft to the value of R840. The monthly debit order for the insurance premium to the value of R1 200. A fixed deposit for R6 400 has matured. The capital sum plus interest of R300 had been transferred into the bank account. The following items were identified in accounting records (general ledger bank account) that were not reflected on the bank statement: The following cheques were issued during March 2019: Cheque 1178 R 400 Cheque 1182 R1 185 Cheque 1194 R1 320 Deposits that were paid via electronic transfer on 31 March 2019 in settlement of their accounts with the restaurant: Customer V Scillachi R5 200 Customer M Rossi R2 501 The bank incorrectly transferred a deposit of R600 into Magical Sicily’s account that was meant for a business named Sicilian Majestic. YOU ARE REQUIRED TO: Prepare the bank account in the general ledger on 31 March 2019, properly balanced. Prepare the bank reconciliation on 31 March 2019

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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As the accountant of the popular Italian restaurant, Magical Sicily, you have been requested to assist the bookkeeper to prepare the bank reconciliation statement at 31 March 2019.

The following information is provided:

The bank balance as per the general ledger at 31 March 2019 is an R5 158 in overdraft.

The bank balance as per the bank statement as at 31 March 2019 is a debit of R5 924.

The following transactions were identified to be on the bank statement and were not accounted for by the bookkeeper:

Bank charges amounted to R1 230.
Interest was paid on the overdraft to the value of R840.
The monthly debit order for the insurance premium to the value of R1 200.
A fixed deposit for R6 400 has matured. The capital sum plus interest of R300 had been transferred into the bank account.

The following items were identified in accounting records (general ledger bank account) that were not reflected on the bank statement:

The following cheques were issued during March 2019:

Cheque 1178 R 400
Cheque 1182 R1 185
Cheque 1194 R1 320

Deposits that were paid via electronic transfer on 31 March 2019 in settlement of their accounts with the restaurant:

Customer V Scillachi R5 200
Customer M Rossi R2 501

The bank incorrectly transferred a deposit of R600 into Magical Sicily’s account that was meant for a business named Sicilian Majestic.

YOU ARE REQUIRED TO:

Prepare the bank account in the general ledger on 31 March 2019, properly balanced.

Prepare the bank reconciliation on 31 March 2019.

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