- This topic has 1 reply, 2 voices, and was last updated 10 months ago by
.
- Posts
Hello, dear tutor.
Mauritz Co is preparing a bank reconciliation. The bank balance in the general ledger is $540credit. There are two items that have not yet been dealt with:
(1) A cheque for $620 was sent to a supplier but is not yet showing on the bank statement
(2) A bank charge of $28 was charged by the bank, but was not recorded by Mauritz Co.
What is the closing balance on Mauritz Co’s bank statement?
A) $1,132 overdrawn
B) $1,188 overdrawn
C) $52 cash at bank
D) $108 cash at bank
To my mind there is no correct answer. In my opinion the correct answer is $568DrWhy are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – it has answers (and explanations).
The bank balance in the ledger is 540 Cr. The bank charges have not yet been recorded and so after recording them the correct balance in the ledger is 540 + 28 = 568 Cr (i.e. overdrawn).
However the question asks for the balance on the bank statement. On the bank statement the payment of 620 is not yet showing (and is an unpresented cheque) and therefore the balance showing on the bank statement is 620 – 568 = 52 cash at the bank, and so the answer is C.
Have you watched my free lectures on bank reconciliations? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
- You must be logged in to reply to this topic.