The bank statement for Westworld reports a balance of £580 on the 31 July 20X1. Prepare a statement reconciling the bank account balance to the figure for cash in the trial balance. b. The total of individual balances on the creditors ledger as at 31 July 20X1 is £2,070. Prepare a statement reconciling the balance on the creditors ledger to the figure for trade creditors in the trial balance. The owner of Westworld Ltd has prepared the following piece of the trial balance as at 31 July 20X1 from her accounting records: Cash 550 Trade Creditors 2,020 Purchases 15,245 The owner does not understand why her trial balance does not balance and asks for your help. On investigation, you discover the following information: 1. A payment of £20 to a supplier was correctly included in the cash book but was omitted from the creditors ledger. 2. Cash in the trial balance agrees to the balance in the cash book. However, when the amounts in the cash book were added up a receipt of £100 from a customer was omitted. 3. A cheque for £40 received from a customer has not yet cleared into the bank account. 4. Bank charges of £30 for the month of July are included in the bank statement but have not yet been entered into the cash book. 5. Trade creditors in the trial balance agrees to the figure on the creditors control account. However, a purchase of £470 was correctly recorded in the creditors ledger but was recorded as £440 in the purchases day book.
The bank statement for Westworld reports a balance of £580 on the 31 July 20X1.
Prepare a statement reconciling the bank account balance to the figure for cash in the
b. The total of individual balances on the creditors ledger as at 31 July 20X1 is £2,070. Prepare a statement reconciling the balance on the creditors ledger to the figure for trade creditors in the trial balance.
The owner of Westworld Ltd has prepared the following piece of the trial balance as at 31 July
20X1 from her accounting records:
Cash 550
Trade Creditors 2,020
Purchases 15,245
The owner does not understand why her trial balance does not balance and asks for your help.
On investigation, you discover the following information:
1. A payment of £20 to a supplier was correctly included in the
2. Cash in the trial balance agrees to the balance in the cash book. However, when the amounts in the cash book were added up a receipt of £100 from a customer was omitted.
3. A cheque for £40 received from a customer has not yet cleared into the bank account.
4. Bank charges of £30 for the month of July are included in the bank statement but have not yet been entered into the cash book.
5. Trade creditors in the trial balance agrees to the figure on the creditors control account. However, a purchase of £470 was correctly recorded in the creditors ledger but was recorded as £440 in the purchases day book.
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