Help Bank statement pls — OpenTuition Forums

Llittlestart15y ago

Paulette is preparing her bank reconciliation. The bank balance in her general ledger is $1250 credit. the only items which need to be dealt with are:
1) a cheque for $822 issued to a supplier which has not yet appeared on the bank statement
2) a cheque receipt from a credit customer of $567 has been dishonoured. Paulette has not yet recorded this.
3) Bank charges of $245 have been debited by the bank ,but not yet recorded by Paulette
4) The bank credited Paulette account in error with $4560
what is the closing balance on P's bank statement?
the answer is 2062 overdraft

I can get the answer (2062), which is the balance after those adjustments.
But It is very confusing that the question is asking what is the closing balance on P's bank statement. I thought we need to calculate the bank statement BEFORE making those adjustments. so My answer is 3320.
Could you please tell me what 's your answer?

Mmahdiniaacc15y ago#1

As you truly said, 2,062 is not true and your answer of 3,320 should be true. according to the question's information, 2,062 is the final and reconciled figure of bank balance which should be appear on the SOFP but the question asked us about bank statement balance which is 3,320 and we know that the bank statement balance is not necessarily reconciled balance therefor it could be included of any errors made by bank and excluded of other right articles that are in the cash book but are not in the bank statement.

Good luck

Llittlestart15y ago#2

Dear Mahdiniaacc, thanks for your quick reply. Good luck

Mmahdiniaacc15y ago#3

You're welcome

Vvrushali15y ago#4

hi,
the question says that "closing balance on p's bank statement."-my understanding says reconciled balance on bank statement.
so i truly think that 2062 Cr. is the right answer.
by the way, did u mean that 3320 is correct answer?
and if yes, how did u get it?

Mmahdiniaacc15y ago#5

@vrushali said:
my understanding says reconciled balance on bank statement.

How do you understand " the reconciled balance on bank statement " from " closing balance on bank statement " ????
actually, it's common in F3's question that asks students about unadjusted closing balance on bank statement from given information of unadjusted closing balance on bank ledger and all differences between the ledger and the statement.

good luck

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