Hi everyone. I am also new in this forum and I need your help.
I can not balance Cash Book and Bank Reconciliation Statement.
Please help. The issue is this:
The following is the cash book for the month of May 2009.
Cash Book
US$0000 US$,000
Debtors 737 Balance b/f 1197
Creditors 698
Staff Allowances 315
Local Staff Salaries 122
Drawings 84
Balance c/f 1679
2416 2416
Balance b/f 1679
The following information were not taken into consideration:
a. Bank charges of US$7,700 was shown in the bank statement but not recorded in the cash book.
b. Two cheques issued to creditors (Payables Account) of US$3,230 and US$5,600 were not recorded in the bank statement.
c. Three cheques received from debtors (Receivables Account) of US$1,020, US$4,000 and US$3,200 each were not recorded in the bank statement
d. A cheque received from a debtor of US$1,500 was not honored by the bank and was not adjusted in the cash book
e. Bank interest of US$250 was credited in the bank statement but not recorded in the cash book.
f. A bank transfer received from a staff member to pay the debt of outstanding telephone charges owed to company amounting to US$2,500 was not recorded in the cash book.
You are required to:
i. Update the cash book
ii. Prepare the bank reconciliation statement using the adjusted cash book.
I can not balance Cash Book and Bank Reconciliation Statement.
Please help. The issue is this:
The following is the cash book for the month of May 2009.
Cash Book
US$0000 US$,000
Debtors 737 Balance b/f 1197
Creditors 698
Staff Allowances 315
Local Staff Salaries 122
Drawings 84
Balance c/f 1679
2416 2416
Balance b/f 1679
The following information were not taken into consideration:
a. Bank charges of US$7,700 was shown in the bank statement but not recorded in the cash book.
b. Two cheques issued to creditors (Payables Account) of US$3,230 and US$5,600 were not recorded in the bank statement.
c. Three cheques received from debtors (Receivables Account) of US$1,020, US$4,000 and US$3,200 each were not recorded in the bank statement
d. A cheque received from a debtor of US$1,500 was not honored by the bank and was not adjusted in the cash book
e. Bank interest of US$250 was credited in the bank statement but not recorded in the cash book.
f. A bank transfer received from a staff member to pay the debt of outstanding telephone charges owed to company amounting to US$2,500 was not recorded in the cash book.
You are required to:
i. Update the cash book
ii. Prepare the bank reconciliation statement using the adjusted cash book.
