Answered: b) Carole Stoke receives her April 6…

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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Question

b) Carole Stoke receives her April 6 2024, bank statement showing a balance of
R910.55, her cash book balance is R1 002.85.
The bank statement shows an ATM charge of R29.20, Overdraft fee of R33.50,
earned interest of R2.55, and Carol’s R656.50 refund check which was processed
by the SARS and deposited in her account.
Carol has two checks that have not cleared-Number 115 for R672.95 and Number
116 for R230.60. There is also a deposit in transit for R1 952.65.
Required:
Prepare Carol’s bank reconciliation for the month of April 2024. (14 marks)

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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