You are the bookkeeper of Mel Traders. You undertake a bank reconciliation at the end of every month. Mel Traders received its bank statement for the month ending 31 May 2021. The bank reconciliation at the end of April showed a deposit in transit of $11,700 and two outstanding cheques (no. 663 for $3,060and no. 671 for $6,300). The adjusted cash balance in the entity’s records was $106,305 debit at the end of April. Below are theentity’s May bank statement and the entity’s book records that indicate the deposits made and cheques written during the month of May: AU Bank - Bank Statement For the period 01/05/2021 – 31/05/2021 Mel Traders       Dr Cr Balance $       Balance brought forward     103,965 CR 1 May Deposit   11,700 115,665 CR 3 May Deposit   10,620 126,285 CR   May Cheque # 682 4,680   121,605 CR 6 May Deposit   6,120 127,725 CR 8 May # 671 6,300   121,425 CR 9 May Deposit   7,560 128,985 CR 12 May Deposit   3,780 132,765 CR   May # 684 6,300   126,465 CR 13 May # 683 15,300   111,165 CR 15 May Deposit   14,580 125,745 CR   May # 687 13,320   112,425 CR 20 May Deposit   5,040 117,465 CR 22 May # 685 12,240   105,225 CR 26 May Deposit   13,680 118,905 CR 29 May # 686 11,340   107,565 CR 30 May # 680 7,740   99,825 CR 31 May interest   345 100,170 CR 31 May Transaction fees 195   99,975 CR   Mel Traders’ Book Records Date Deposits made Cheques written     $ No. $ May 3 10620 # 679 4320   6 6120 # 680 7740   9 7560 # 681 6210   12 3780 # 682 4680   15 14580 # 683 15300   20 5040 # 684 6300   26 13680 # 685 12240   29 11340 # 686 6480     $ 72,720 # 687 13320         $ 76,590   The cash at bank account balance on 31 May was $102,435. In reviewing cheques, a mistake was discovered: Cheque no. 686, written for insurance expenses of $11,340, was recorded in the general journal as $6,480. Required: a) As the entity does not use special journals, prepare the necessary general journal entries to bring the cash at bank account up to date as at 31 May 2021.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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You are the bookkeeper of Mel Traders. You undertake a bank reconciliation at the end of every month. Mel Traders received its bank statement for the month ending 31 May 2021. The bank reconciliation at the end of April showed a deposit in transit of $11,700 and two outstanding cheques (no. 663 for $3,060and no. 671 for $6,300). The adjusted cash balance in the entity’s records was $106,305 debit at the end of April.

Below are theentity’s May bank statement and the entity’s book records that indicate the deposits made and cheques written during the month of May:

AU Bank - Bank Statement

For the period 01/05/2021 – 31/05/2021

Mel Traders

 

 

 

Dr

Cr

Balance $

 

 

 

Balance brought forward

 

 

103,965

CR

1

May

Deposit

 

11,700

115,665

CR

3

May

Deposit

 

10,620

126,285

CR

 

May

Cheque # 682

4,680

 

121,605

CR

6

May

Deposit

 

6,120

127,725

CR

8

May

# 671

6,300

 

121,425

CR

9

May

Deposit

 

7,560

128,985

CR

12

May

Deposit

 

3,780

132,765

CR

 

May

# 684

6,300

 

126,465

CR

13

May

# 683

15,300

 

111,165

CR

15

May

Deposit

 

14,580

125,745

CR

 

May

# 687

13,320

 

112,425

CR

20

May

Deposit

 

5,040

117,465

CR

22

May

# 685

12,240

 

105,225

CR

26

May

Deposit

 

13,680

118,905

CR

29

May

# 686

11,340

 

107,565

CR

30

May

# 680

7,740

 

99,825

CR

31

May

interest

 

345

100,170

CR

31

May

Transaction fees

195

 

99,975

CR

 

Mel Traders’ Book Records

Date

Deposits made

Cheques written

 

 

$

No.

$

May

3

10620

# 679

4320

 

6

6120

# 680

7740

 

9

7560

# 681

6210

 

12

3780

# 682

4680

 

15

14580

# 683

15300

 

20

5040

# 684

6300

 

26

13680

# 685

12240

 

29

11340

# 686

6480

 

 

$ 72,720

# 687

13320

 

 

 

 

$ 76,590

 

The cash at bank account balance on 31 May was $102,435.

In reviewing cheques, a mistake was discovered: Cheque no. 686, written for insurance expenses of $11,340, was recorded in the general journal as $6,480.

Required:

a) As the entity does not use special journals, prepare the necessary general journal entries to bring the cash at bank account up to date as at 31 May 2021.

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