Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Bank Reconciliations
- This topic has 3 replies, 3 voices, and was last updated 8 years ago by John Moffat.
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- November 11, 2015 at 7:54 am #281647
The following information relates to a bank reconciliation.
(i) The bank balance in the cashbook before taking the items below into account was $8,970 overdrawn.
(ii) Bank charges of $550 on the bank statement have not been entered in the cashbook.
(iii) The bank has credited the account in error with $425 which belongs to another customer.
(iv) Cheque payments totalling $3,275 have been entered in the cashbook but have not been presented for payment.
(v) Cheques totalling $5,380 have been correctly entered on the debit side of the cashbook but have not been paid in at the bank.What was the balance as shown by the bank statement before taking the items above into account?
A $8,970 overdrawn
B $11,200 overdrawn
C $12,050 overdrawn
D $17,750 overdrawn
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The word “before” is confusing me. Please help me on this one 🙂November 11, 2015 at 8:50 am #281665The bank statement will not be showing the unpresented cheques (iv) or the lodgements not paid in (v). The balance on the bank statement will also be wrong because they have made a mistake (iii).
The correct balance in the cash account will be 8970 – 550 = 8420 because of item (ii).
So you need to work backwards from 8420 to deal with the last three items to determine what the balance on the bank statement must have been.
The free lecture on bank reconciliation will help you with this.
Our lectures are a complete course for Paper F3 and cover everything you need to be able to pass the exam well.November 11, 2015 at 6:45 pm #281800Hi John
Q6 chapter 16 for cost accounting
Refund is credited to the account instead of debited.
Is this because it would be debited in the cash account ?
November 12, 2015 at 6:16 am #281854Please start a new thread when it is a new topic – this has nothing at all to do with bank reconciliations (and is not cost accounting either – cost accounting in Paper F2!!!)
Have you watched the free lecture that goes with this chapter (because I do explain about refunds in the lecture, and there is no point at all in using the lecture notes without the lectures).
A refund from a supplier is simply cash returned to us by the supplier for some reason (e.g. maybe we had overpaid). The entry is therefore Dr Cash Cr Payables. That is always the entry for a refund from a supplier.
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