Shiekh & Co.’s Bank Statement for February 28 of the current year showed a balance of Rs. 36922 and cash book (book column) reveals a balance of Rs. 35354.   Upon comparison, the following are these causes for differences: Cheques drawn amounting to Rs. 5478 had not been presented. The payment side of the cash book had been under cost by Rs. 1700. Interest charged amounted to Rs. 840 had not yet record in the cash book. Bank charges of Rs. 64. Cheques deposited for Rs. 1000, Rs. 1100 and 456 respectively were not shown on bank statement. Direct deposit by a customer Mr. Shahid was credited by banks but not recorded in the cash book Rs. 1250. Required:                                                                                                        Prepare a bank reconciliation statement showing the adjusted balance. Prepare necessary adjusting entries in the General Journal.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Shiekh & Co.’s Bank Statement for February 28 of the current year showed a balance of Rs. 36922 and cash book (book column) reveals a balance of Rs. 35354.

 

Upon comparison, the following are these causes for differences:

  1. Cheques drawn amounting to Rs. 5478 had not been presented.
  2. The payment side of the cash book had been under cost by Rs. 1700.
  3. Interest charged amounted to Rs. 840 had not yet record in the cash book.
  4. Bank charges of Rs. 64.
  5. Cheques deposited for Rs. 1000, Rs. 1100 and 456 respectively were not shown on bank statement.
  6. Direct deposit by a customer Mr. Shahid was credited by banks but not recorded in the cash book Rs. 1250.

Required:                                                                                                       

  1. Prepare a bank reconciliation statement showing the adjusted balance.
  2. Prepare necessary adjusting entries in the General Journal.

 

 

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