acca mock revision… solve this ….

Why are you posting all these questions?
People are not going to do your work for you!

(i) a cheque for $822 issued to a supplier which has not yet appeared on the bank
statement
this is a bank reconciliation item and should be deducted because this has happened for timing difference and will eventually be deducted from banks balance in the next bank statement but it relates to this month or year so should be charged this month/year according accruals concept

(ii) a cheque receipt from a credit customer of $567 has been dishonoured, Paulette has
not yet recorded this
this has occurred due to a fraudulent or mistakenly drawn cheque and the business has taken account for it and debited it in the ledger a/c but is how ever a bad cheque and should be deducted from the bank balance and look for another way of payment from the customer
(iii) Bank charges of $245 have been debited by the bank, but not yet recorded by
Paulette
this reduces the bank balance and should be credited in the bank a/c

(iv) The bank credited Paulette’s account in error with $4,560.
What is the closing balance on Jane’s bank statement
this is an error made by the bank and the bank should rectify it, however we will take account of it in the bank reconciliation statement

therefore bank balance as given (1250)
less: dishonoured cheque (567)
less:bank charges (245)

correct bank balance (2062)

this should be the closing balance of bank however bank has not yet accounted for a timing difference of 822 an the error of 4560 at first, so the bank statement balance prior the errors (2062)+4560+822=3320

so for the errors there is a huge difference betwwen the bank balance at cash book and the bank statement balance 3320-(2062)=5382

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