Could you please help me with this question-
A company has prepared its bank reconciliation at 30 September 20X9 taking the following information into
account:
Outstanding lodgements 12,000
Unpresented cheques 14,700
Dishonoured cheque not entered in the cash book 2,600
The bank statement shows that the company has an overdrawn balance of $1,280.
What should be the adjusted cash book balance per the bank reconciliation at 30 September 20X9?
Ask the Tutor ACCA FA
Bank Reconciliation
5y ago#1Why are you attempting a question for which you do not have answer? You should be using a Revision Kit from one of the ACCA Approved Publishers - they have answers and explanations
:-)
After preparing the bank reconciliation statement, the end result will be the correct cash book balance and this is what the question is requiring.
In the bank reconciliation statement we start with the balance showing on the bank statement and adjust for the outstanding lodgements and the unpresented cheques. The fact that the dishonoured cheque has not been entered in the cash book does not affect the bank reconciliation statement because it will already have affected the balance on the bank statement.
Have you watched my free lectures on this? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
The answer I got is 3980 DR but the Actual answer is 3980 CR..
5y ago#3The correct cash book balance is overdrawn. Although an overdraft is a debit balance on the bank statement (for reasons I explain in my lectures) an overdraft is a credit balance in the cash book and the question asks for the correct balance in the cash book.
Again, have you watched my free lectures? :-)
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