T. Howard's Cash Book at 2020 September 30 showed debit balance at the bank of $1 024 but the Bank Statement at same date had a credit balance of $262.After comparing the Cash Book with the Bank Statement, the following differences were noted: i. An amount of $142 paid into the bank had not yet appeared on the Statement.ii. Bank interest of $60 in respect of an earlier overdraft had been charged by the bank. iii. Cheques issued for $560 had not been presented for payment.iv. A cheque received for $800 and debited in the Cash Book was returned unpaid by the bank because of lack of funds. v. Funds of $1 120 paid into the bank had been entered in the Cash Book as $1 000.vi. The bank had made a standing order payment for insurance of $480 which had not been recorded in the Cash Book.vii. The bank had received by direct credit transfer a payment of $40 due to Howard from G. Keith. Prepare the following:A. Updated Cash Book of T. Howard.B. Bank Reconciliation Statement as at 2021 September 30.
T. Howard's Cash Book at 2020 September 30 showed debit balance at the bank of $1 024 but the Bank Statement at same date had a credit balance of $262.After comparing the Cash Book with the Bank Statement, the following differences were noted: i. An amount of $142 paid into the bank had not yet appeared on the Statement.ii. Bank interest of $60 in respect of an earlier overdraft had been charged by the bank. iii. Cheques issued for $560 had not been presented for payment.iv. A cheque received for $800 and debited in the Cash Book was returned unpaid by the bank because of lack of funds. v. Funds of $1 120 paid into the bank had been entered in the Cash Book as $1 000.vi. The bank had made a standing order payment for insurance of $480 which had not been recorded in the Cash Book.vii. The bank had received by direct credit transfer a payment of $40 due to Howard from G. Keith. Prepare the following:A. Updated Cash Book of T. Howard.B. Bank Reconciliation Statement as at 2021 September 30.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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T. Howard's Cash Book at 2020 September 30 showed debit balance at the bank of $1 024 but the Bank Statement at same date had a credit balance of $262.After comparing the Cash Book with the Bank Statement, the following differences were noted: i. An amount of $142 paid into the bank had not yet appeared on the Statement.ii. Bank interest of $60 in respect of an earlier overdraft had been charged by the bank. iii. Cheques issued for $560 had not been presented for payment.iv. A cheque received for $800 and debited in the Cash Book was returned unpaid by the bank because of lack of funds. v. Funds of $1 120 paid into the bank had been entered in the Cash Book as $1 000.vi. The bank had made a standing order payment for insurance of $480 which had not been recorded in the Cash Book.vii. The bank had received by direct credit transfer a payment of $40 due to Howard from G. Keith. Prepare the following:A. Updated Cash Book of T. Howard.B. Bank Reconciliation Statement as at 2021 September 30.
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