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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Shiekh & Co.’s Bank Statement for February 28 of the current year showed a balance of Rs. 36922 and
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.
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