The bank column in the cash book for December 2020 and the bank statement for that month for King Trading are as follows:Cash Book (Bank Account only)2020 RM2020 RM Dec 6 Peypei 230Dec1 Balance b/d 1,90020Ceria26510Luna30431Baiti32519Wilson26131Balance c/d1,68229Cikmah37 2,502 2,502 Bank StatementDateItemsDebitCreditBalanceDec 1Balance 1,9006Cheque 2301,67013Luna304 1,97420Cheque 2651,70922Wilson261 1,97030Tox : Standing Order94 2,06431Rina : Trader’s Credit 1021,96231Bank charges72 2,034 Required:Prepare the updated cashbook

Bank reconciliation statement is prepared where an entry which is found in one book (Cash book or…

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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Cash Book (Bank Account only)

2020		RM	2020		RM
Dec 6	Peypei	230	Dec 1	Balance b/d	1,900
20	Ceria	265	10	Luna	304
31	Baiti	325	19	Wilson	261
31	Balance c/d	1,682	29	Cikmah	37
		2,502			2,502

Bank Statement

Date	Items	Debit	Credit	Balance
Dec 1	Balance			1,900
6	Cheque		230	1,670
13	Luna	304		1,974
20	Cheque		265	1,709
22	Wilson	261		1,970
30	Tox : Standing Order	94		2,064
31	Rina : Trader’s Credit		102	1,962
31	Bank charges	72		2,034

Required:

Prepare the updated cashbook

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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