The cash book of Intan shows an overdraft balance of RM80,000 on the 31 January 20X1. The Bank Statement for 31 January 20X1 shows an overdraft balance of RM90,900. After examining the two, the following are found: Credit side of the cash book cast short – RM1,000 Premium on Life Insurance Policy paid on standing order – RM5,000 Cheque recorded for collection but not sent to the bank – RM10,000 Bank Charges recorded twice in the cash book – RM100 Customer’s cheque returned by the bank as dishonoured – RM4,000 Bill Receivable collected by the bank directly on the behalf of company – RM20,000 Cheque received entered twice in the cash book – RM6,000 Cheque issued but dishonoured on technical grounds – RM3,000 Cheques deposited into the bank of worth RM45,000 but RM8,000 cheque was not collected by bank   Required: Prepare a Bank Reconciliation statement for the month of 31 January 20X1, after making the necessary adjustments to the cash book.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

The cash book of Intan shows an overdraft balance of RM80,000 on the 31 January 20X1. The Bank Statement for 31 January 20X1 shows an overdraft balance of RM90,900. After examining the two, the following are found:

  • Credit side of the cash book cast short – RM1,000
  • Premium on Life Insurance Policy paid on standing order – RM5,000
  • Cheque recorded for collection but not sent to the bank – RM10,000
  • Bank Charges recorded twice in the cash book – RM100
  • Customer’s cheque returned by the bank as dishonoured – RM4,000
  • Bill Receivable collected by the bank directly on the behalf of company – RM20,000
  • Cheque received entered twice in the cash book – RM6,000
  • Cheque issued but dishonoured on technical grounds – RM3,000
  • Cheques deposited into the bank of worth RM45,000 but RM8,000 cheque was not collected by bank

 

Required:

Prepare a Bank Reconciliation statement for the month of 31 January 20X1, after making the necessary adjustments to the cash book.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education