Tom Brady Ltd received a bank statement from their bank, Westpac, showing a credit balance of $8,800, while Cash at Bank balance as per the company’s record showed a debit balance of $8,331 on 31 March 2023. The following were discovered in an attempt to reconcile the two records: 1. Outstanding EFTs at 31 March totalled $5,400. 2. The bank has collected $2,200 on the behalf of Tom Brady Ltd for the note of $2,000 plus interest
Tom Brady Ltd received a bank statement from their bank, Westpac, showing a credit balance of $8,800, while Cash at Bank balance as per the company’s record showed a debit balance of $8,331 on 31 March 2023. The following were discovered in an attempt to reconcile the two records:
1. Outstanding EFTs at 31 March totalled $5,400.
2. The bank has collected $2,200 on the behalf of Tom Brady Ltd for the note of $2,000 plus interest of $200. Tom Brady Ltd has not accrued any interest.
3. On 31 March the bank statement showed a reversal entry of $750 that had been originally deposited by a customer, Ms Fulton, to Tom Brady Ltd.
4. A deposit of $6,300 appears in the cash at bank account but had not been recorded by the bank at 31 March 2023.
5. On 20 March Tom Brady Ltd authorised an EFT (Ref no. 202) for $690 to M. Johnson on account. The EFT, which was processed by the bank in March was incorrectly journalised and posted by Tom Brady Ltd for $609.
Required
a. Prepare a bank reconciliation at 31 March 2023 based on the provided information. (3.5 marks)
b. Prepare journal to record the necessary
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