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Bank Reconciliations

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Bank Reconciliations

  • This topic has 11 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 12 posts - 1 through 12 (of 12 total)
  • Author
    Posts
  • October 24, 2015 at 4:40 pm #278735
    rafayazhar
    Participant
    • Topics: 53
    • Replies: 153
    • ☆☆☆

    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
    __________________
    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 #278767
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    Unpresented 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 #278841
    rafayazhar
    Participant
    • Topics: 53
    • Replies: 153
    • ☆☆☆

    Therefore 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 #278844
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    That is always the case.

    October 25, 2015 at 2:40 pm #278865
    rafayazhar
    Participant
    • Topics: 53
    • Replies: 153
    • ☆☆☆

    Thankyou! 🙂

    October 25, 2015 at 6:28 pm #278906
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    You are welcome 🙂

    October 31, 2015 at 5:14 am #279744
    rafayazhar
    Participant
    • Topics: 53
    • Replies: 153
    • ☆☆☆

    The 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
    ________________________________________________________
    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 #279774
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    Please 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 #279775
    rafayazhar
    Participant
    • Topics: 53
    • Replies: 153
    • ☆☆☆

    Alright 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 #279801
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    No – 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 #279823
    rafayazhar
    Participant
    • Topics: 53
    • Replies: 153
    • ☆☆☆

    Thanks Sir! 🙂

    November 1, 2015 at 9:30 am #279875
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    You are welcome 🙂

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