The following is the Cash Book (Bank columns only) for MaryClarke for June 2020.DebitCredit$$June 1 Balance8000June 6 Rent1200b/dJune 91200June 9 Electricity 600LodgementJune 10 Gary1000June 12 Bob1600GrantParkerJune 14 Bryan3040June 15 Frank800BrownWhyteJune 22 Paul3680June 24 Tom3360CarterGreenJune 30 Balance 9360c/d1692016920The following Bank Statement relates to the same periodunder considerationReceipts2$BalancePayments$2020$June 1 Balance b/d80004 Standingorder6079408 Rent1200674012 Electricity13 Lodgement15 Gary Grant6006140120073401000834018 Joan11409480Thomas217608720Dishonouredcheque24 Bank1208600charges26 Direct4009000transfer30 Bob Parker16007400Required:A. Prepare an updated cash book for the month of June 2020.B. Prepare a bank reconciliation statement as of June 30, 2020.C. Explain ONE (1) reason for the difference between thebalance on the cash book and the bank statement.

The bank reconciliation statement is prepared to adjust the cash balance and bank balance to make…

The following is the Cash Book (Bank columns only) for Mary Clarke for June 2020. Debit Credit $ $ June 1 Balance 8000 June 6 Rent 1200 b/d June 9 1200 June 9 Electricity 600 Lodgement June 10 Gary 1000 June 12 Bob 1600

The following is the Cash Book (Bank columns only) for Mary Clarke for June 2020. Debit Credit $ $ June 1 Balance 8000 June 6 Rent 1200 b/d June 9 1200 June 9 Electricity 600 Lodgement June 10 Gary 1000 June 12 Bob 1600

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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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

The following is the Cash Book (Bank columns only) for Mary
Clarke for June 2020.
Debit
Credit
$
$
June 1 Balance
8000
June 6 Rent
1200
b/d
June 9
1200
June 9 Electricity 600
Lodgement
June 10 Gary
1000
June 12 Bob
1600
Grant
Parker
June 14 Bryan
3040
June 15 Frank
800
Brown
Whyte
June 22 Paul
3680
June 24 Tom
3360
Carter
Green
June 30 Balance 9360
c/d
16920
16920
The following Bank Statement relates to the same period
under consideration
Receipts
2$
Balance
Payments
$
2020
$
June 1 Balance b/d
8000
4 Standing
order
60
7940
8 Rent
1200
6740
12 Electricity
13 Lodgement
15 Gary Grant
600
6140
1200
7340
1000
8340
18 Joan
1140
9480
Thomas
21
760
8720
Dishonoured
cheque
24 Bank
120
8600
charges
26 Direct
400
9000
transfer
30 Bob Parker
1600
7400
Required:
A. Prepare an updated cash book for the month of June 2020.
B. Prepare a bank reconciliation statement as of June 30, 2020.
C. Explain ONE (1) reason for the difference between the
balance on the cash book and the bank statement.

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None
Chapter : Bank Reconciliation Statement
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