Read the following and answer the questions below. On 31 December 20X8 the bank column of C Tench’s cash book showed a debit balance of £1,500. The monthly bank statement written up to 31 December 20X8 showed a credit balance of £2,950. On checking the cash book with the bank statement it was discovered that the following transactions had not been entered in the cash book: Dividends of £240 had been paid directly to the bank. A credit transfer – Customs and Excise VAT refund of £260 – had been collected by the bank. Bank charges £30. A direct debit of £70 for the RAC subscription had been paid by the bank. A standing order of £200 for C Tench’s loan repayment had been paid by the bank. C Tench’s deposit account balance of £1,400 was transferred into his bank current account. A further check revealed the following items: Two cheques drawn in favour of T Cod £250 and F Haddock £290 had been entered in the cash book but had not been presented for payment. Cash and cheques amounting to £690 had been paid into the bank on 31 December 20X8 but were not credited by the bank until 2 January 20X9.
Read the following and answer the questions below. On 31 December 20X8 the bank column of C Tench’s cash book showed a debit balance of £1,500. The monthly bank statement written up to 31 December 20X8 showed a credit balance of £2,950. On checking the cash book with the bank statement it was discovered that the following transactions had not been entered in the cash book: Dividends of £240 had been paid directly to the bank. A credit transfer – Customs and Excise VAT refund of £260 – had been collected by the bank. Bank charges £30. A direct debit of £70 for the RAC subscription had been paid by the bank. A standing order of £200 for C Tench’s loan repayment had been paid by the bank. C Tench’s deposit account balance of £1,400 was transferred into his bank current account. A further check revealed the following items: Two cheques drawn in favour of T Cod £250 and F Haddock £290 had been entered in the cash book but had not been presented for payment. Cash and cheques amounting to £690 had been paid into the bank on 31 December 20X8 but were not credited by the bank until 2 January 20X9.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Read the following and answer the questions below.
On 31 December 20X8 the bank column of C Tench’s cash book showed a debit balance of £1,500.
The monthly bank statement written up to 31 December 20X8 showed a credit balance of
£2,950.
On checking the cash book with the bank statement it was discovered that the following transactions
had not been entered in the cash book:
Dividends of £240 had been paid directly to the bank.
A credit transfer – Customs and Excise VAT refund of £260 – had been collected by the bank.
Bank charges £30.
A direct debit of £70 for the RAC subscription had been paid by the bank.
A standing order of £200 for C Tench’s loan repayment had been paid by the bank.
C Tench’s deposit account balance of £1,400 was transferred into his bank current account.
A further check revealed the following items:
Two cheques drawn in favour of T Cod £250 and F Haddock £290 had been entered in the cash
book but had not been presented for payment.
Cash and cheques amounting to £690 had been paid into the bank on 31 December 20X8 but were
not credited by the bank until 2 January 20X9.
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