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hello sir
this question is from online application and i do not understand how solve it
Question:The balance on Elizabeth’s cash book is 27 overdrawn. Her bank statement shows that she is 625 in credit. When Elizabeth does a reconcilition she finds that there are presented cheques of 327 and unposted direct debits of 200. However, one of her customers has paid 525 directly into her bank account, so her cash book now has a debit balance. What is the value of this debit balance?
Either you have copied the question wrongly, or there is an error in the question.
There are not ‘presented cheques’ of 327 – they are ‘unpresented cheques’
The only item affecting the cash account the 525 received from a customer that has not been recorded in the cash account. When that has been entered, the cash account will have a debit balance of 498.
You will then find that this does reconcile with the bank statement when the unpresented cheques and unposed debits are accounted for.You really need to watch my free lectures on bank reconciliations – you obviously cannot expect me to type them all out here 🙂
Also, to be sure of passing the exam, you really should be practice questions from a Revision Kit published by one of the ACCA approved publishers. They are full of exam standard questions together with answers and explanations.
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