Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Bank reconciliation
- This topic has 1 reply, 2 voices, and was last updated 2 months ago by John Moffat.
- December 28, 2022 at 5:20 pm #675157sm8980Participant
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An entity has prepared its bank reconciliation at 31/03/14 taking the following into account
Outstanding lodgements 5000
Unpresented cheques 2800
Bank charges included in the bank statement but not recorded in the cash book were 125
The adjusted cash book balance per the bank Rec was a debit balance of 1060
What was the balance as shown on the bank statement at 31/3/14?
For the above I have adjusted for the bank charge since we are asked the balance on the bank statement and it has not been taken into account in the cash book. I have a good grasp of this chapter with getting all the other questions right apart from this one. Just wondering what I have missed on this?
Kaplans answer was (1140) overdrawn however mine was (1265) overdrawn. My working was
Why would the bank Charge be ignored? (I also know that Kaplans book contains a lot errors so I’m not sure if this is one or if it’s me)
Many thanksDecember 29, 2022 at 10:32 am #675168John MoffatKeymaster
- Topics: 56
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Kaplan are correct to ignore the bank charges.
The reason is that they have already been recorded on the bank statement and the 1,060 is the final figure on the bank reconciliation statement which is the bank balance as adjusted just for the outstanding lodgements and the unpresented cheques.
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