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bank reconciliation statement for Tywin at 30 June 20X5 is being prepared. The following information is available:
(1) Bank charges of $2,340 have not been entered in the cash book.
(2) The bank statement shows a balance of $200 Dr.
(3) Unpresented cheques amount to $1,250.
(4) A direct debit of $250 has not been recorded in the ledger accounts.
(5) A bank error has resulted in a cheque for $97 being debited to Tywin’ account instead of Dynasty’s account.
(6) Cheques received but not yet banked amounted to $890.
The final balance in the cash book after all necessary adjustments should be:
$463 Dr
$463 Cr
$63 Cr
$63 DrI don’t understand this question it would be really helpful if you could help, Btw I have watched the video lecture provided by open tution.
We know that the bank statement is showing a balance of $200 Dr
However the cash account will be showing a different balance because of unpresented cheques, lodgments not yet credited, and any errors on the bank statement.
So what the question is asking for is what balance will be showing in the actual cash account, so you need to ‘work backwards’ from the bank statement to calculate this.
Hope that helps 🙂
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