Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Bank Reconciliations
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- October 24, 2015 at 4:40 pm #278735
Your firm’s cash book at 30 April 20X8 shows a balance at the bank of $2,490. Comparison with the bank
statement at the same date reveals the following differences:
$
Unpresented cheques 840
Bank charges not in cash book 50
Receipts not yet credited by the bank 470
Dishonoured cheque not in cash book 140
What is the adjusted bank balance per the cash book at 30 April 20X8?
A $1,460
B $2,300
C $2,580
D $3,140
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In the solution they just deducted the 140 and 50 from 2490. I don’t get this. Should we never consider unpresented cheques and receipts not yet credited by the bank?October 24, 2015 at 10:24 pm #278767Unpresented cheques and receipts not credited by the bank affect the bank statement. They will already have been entered in the cash account and so are not a problem there – it is the balance on the bank statement that is affected.
I do suggest that you watch the free lecture on bank reconciliations – our lectures are a complete course for Paper F3 and cover everything you need to be able to pass the exam.
October 25, 2015 at 12:17 pm #278841Therefore unpresented cheques and receipts not credited by the bank NEVER affect the cashbook right? As they have already been written down? Should I remember this phenomenon for everytime?
October 25, 2015 at 12:23 pm #278844That is always the case.
October 25, 2015 at 2:40 pm #278865Thankyou! 🙂
October 25, 2015 at 6:28 pm #278906You are welcome 🙂
October 31, 2015 at 5:14 am #279744The year end of M Inc is 30 November 20X0. The company pays for its gas by a standing order of $600 per month. On 1 December 20W9, the statement from the gas supplier showed that M Inc had overpaid by $200. M Inc received gas bills for the four quarters commencing on 1 December 20W9 and ending on 30 November 20X0 for $1,300, $1,400, $2,100 and $2,000 respectively.
Which of the following is the correct charge for gas in M Inc’s statement of comprehensive income for the
year ended 30 November 20X0?
A $6,800
B $7,000
C $7,200
D $7,400
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in the answers they have made T accounts of both the Gas suppliers account as well as gas account. I know in the exam It won’t be a good idea making T accounts. Can you please tell me an alternate straight forward approach to this one?October 31, 2015 at 8:57 am #279774Please start a new thread when it is a question on a new topic – this is nothing to do with bank reconciliations 🙂
We want the expense from 1 December W9 to 30 November X0.
So it is simply the total of the bills for those quarters. i.e. 1300 + 1400 + 2100 + 2000 = $6800
October 31, 2015 at 9:01 am #279775Alright noted, sorry for that 🙂
so we didn’t consider the over payment of 200 as we have already noted it as an expense right?October 31, 2015 at 1:28 pm #279801No – the expense is the total that we have been charged for the period, whether or not we have paid more or less. Any overpayment will be recorded as a prepayment in the Statement of financial position.
October 31, 2015 at 3:26 pm #279823Thanks Sir! 🙂
November 1, 2015 at 9:30 am #279875You are welcome 🙂
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