Hello sir, here’s a question about bank reconciliation, the answer is $55570, but I can’t get this answer can u explain this?
ABC Co’s cash book balance as at 31 December 20×8 was $56,260 debit. During the preparation of the bank reconciliation it waw discovered that.
(1) Bank charges of $2,890 had been charged, but had not been recorded by ABC Co
(2) Unpresented cheques were $14,760
(3) Uncleared lodgements were $12,560
What is the balance on ABC Co’s bank statement as at 31 December 20×8?
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Bank reconciliation
4y ago#1The correct balance in the cash book is 56,260 - 2,890 = 53,370.
The bank reconciliation statement takes the balance on the bank statement, subtracts the unpresented cheques, and adds the uncleared lodgements. After doing this we will end up with the balance on the cash book of 53,370.
Therefore to get the balance on the bank statement we need to work backwards and take the cash book balance and add the unpresented cheques and subtract the uncleared lodgement.
53,370 + 14,760 - 12,560 = 55,570.
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.
Okay, well understand, thanks for your explanation on this!
4y ago#3You are welcome :-)
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