bank reconciliation FA1 — OpenTuition Forums

Ssams17y ago

DATA for question 40 and 41 The bank statement of a business at 30 June shows a favourable balance of $i67. the following additional information is available: 1. cheques totaling $394 sent out by the company before 30 June were not cleared until July. 2. two items on the bank statement had not been recorded in the cash book; a credit transfer of $850 from a customer and overdraft interest of $ 112 3. cheques from customers totaling $643 were paid into the bank on 30 June but were not cleared until July 40. if the business prepares a balance sheet on 30 June what will be the figure for cash at bank or overdraft? a. 416 cash at bank b. 82 overdraft c. 322 overdraft d. 820 overdraft 41. what was the original (unadjusted) cash book balance as at 30 June a. 322 debit b. 322 credit c 416 debit d. 416 credit kindly help me solve this question. I want to know the correct answer and also the solution. How to find the cash at bank balance unadjusted?

kengarrettTutor7y ago#1

This is the ACCA AB forum (previously called F1). Foundation FA1 queries should be posted here: https://opentuition.com/forum/fia-forums/fa1-recording-financial-transactions-forums/. However: 40: 1 Needs to be deducted from BS balance to bring it up to date. 167 - 394 = -227 (ie o/d) 2 No adjustment needed to BS as these are on it. 3 Needs to be added to BS balance to bring it up to date. -227 + 643 = 416 2 CB was ok with respect to 1 and 3. Item 2 would not have been in Cb so we need to adjust for them: 416 - 850 + 112 = 322 credit.

Ssams17y ago#2

How do we know that; 1. cheques totaling $394 sent out by the company before 30 June were not cleared until July are unpresented cheques or outstanding lodgements?

kengarrettTutor7y ago#3

They were sent out by the company.Use of the definite article 'the' implies we are talking about the specific comany that is the subject of the question. If these were cheques from a customer, it would have to specifically say something like "Cheques cent out by a customer.." or even '"Cheques sent out by a company...".

This topic is locked — no new replies.