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1. Barry’s bank statement showed a debit balance of $13,008. When Barry was carrying out his bank
Reconciliation, he found the following:
(1) Outstanding lodgment’s $19,680
(2) Unpresented cheques $23,280
(3) Bank charges not recorded in the cash book $432
What amount should be included in Barry’s trial balance for cash?
A $16,608 credit
B $16,608 debit
C $16,176 credit
D $16,176 debit
Please explain how come the answer is B not A?2. The cash book shows a bank balance of $5675 overdrawn at 31 aug 20×5. It is subsequently discovered that a standing order for $125 has been entered twice, and that a dishonored cheque for $450 has been debited to cash book instead of credited.
The correct bank balance to be shown in the statements of financial position should be?
A $5100 overdrawn
B $6000 overdrawn
C $6250 overdrawn
D $6450 overdrawn
Why is the standing order of $125 added not subtracted??3. Your firm’s bank statement at 31 oct 20×8 shows a balance of $13400. You subsequently discovered that the bank has dishonored a customer’s cheque for $300 and has charged bank charges of $50 neither of which is recorded in your cash book. There are unpresented cheques totaling $2400. Amounts paid in but not yet credited by the bank amounts to $1000. You further discovered that an automatic receipt of $190 from a customer has been recorded as a credit in your cash book.
Your cash book balance prior to correcting the errors and omissions was?
A- $11455
B-$11960
C-$12000
D-121504. The debit side of the trail balance totals $50 more than the credit side, this could be due to?
A- A purchase of goods $50 being omitted from supplier accounts
B- A sale of goods $50 being omitted from customers account.
C- An invoice of $25 for electricity being credited to the electricity account.
D- A receipt for $50 from a receivable being omitted from the cash book.5. The receivables ledger control account had a closing balance of $8500. It contained a payment of 400$ but that had been entered on the wrong side of the controlled account.
The correct balance on the control account should be
A- $7700 DR
B- $8100 DR
C- $8400 DR
D- $8900 DR6. A business uses an imeprest system for its petty cash. The following transactions took place during the month of January.
Income = (opening balance $300, sales of stamps $25, use of telephone $10)
Expenditure = (staff travel $125, office refreshment $ 15)
What sum should be reclaimed by the cashier at the end of the month?
A- $300
B- $195
C- $105
D- $1407. At the end of the month an organization needs to accrue for one week’s wages. The gross wages amount to 500$, income tax amounts to 100$, employers benefit contribution is 50$, employees benefit contribution is 40$, and employees contributions to pension schemes amount to 30$. What will be the ledger entries to record accrual be?
1 BS = 13,008 (overdrawn). Adjust by -19680 + 23280 = 16,608 o/d
No need to adjust for bank charges as they will already be in the bank’s records.
An O/D balance in the bank should show as 16,608 CR in the cash book. The answer should therefore be A
2 CB = 5657 od (Cr). So subtract the SO that had been credited twice, and Cr 450 x 2. Resultant balance = 5675 -125 + 900 = 6450
So, I’ve done two of them. You don’t say what your problems are on the others. I don’t just answer questions without evidence of effort from questioners – some just want me to do their homework.
Hi Ken, I thought that the balance per the bank statement was positive as we debit it when we receive cash. Why then do you say it’s overdrawn please?
A Dr balance on the bank statement is form the bank’s point of view and shows you are a debtor: you owe it money so must be overdrawn.
IN you own cash book you see it ‘from the other end’. In you cash book a Cr balance means the bank is owed money by you. It is a creditor.
Abdullah may I ask where you are getting the questions from please? These would be very helpful for me if you could let me know please
Re: Question 3
Bank Statement 13400 + 300 + 50 – 2400 +1000 -380 = 11970
Can you help with this please as I’m not sure if this is correct, it is not one of the given answers.
3. Your firm’s bank statement at 31 oct 20×8 shows a balance of $13400. You subsequently discovered that the bank has dishonored a customer’s cheque for $300 and has charged bank charges of $50 neither of which is recorded in your cash book. There are unpresented cheques totaling $2400. Amounts paid in but not yet credited by the bank amounts to $1000. You further discovered that an automatic receipt of $190 from a customer has been recorded as a credit in your cash book.
Your cash book balance prior to correcting the errors and omissions was?
A- $11455
B-$11960
C-$12000
D-12150Answer:
Bank Statement 13400 + 300 + 50 – 2400 +1000 -380 = 11970
Can you help with this please as I’m not sure if this is correct, it is not one of the given answers.
3. Your firm’s bank statement at 31 oct 20×8 shows a balance of $13400. You subsequently discovered that the bank has dishonored a customer’s cheque for $300 and has charged bank charges of $50 neither of which is recorded in your cash book. There are unpresented cheques totaling $2400. Amounts paid in but not yet credited by the bank amounts to $1000. You further discovered that an automatic receipt of $190 from a customer has been recorded as a credit in your cash book.
Your cash book balance prior to correcting the errors and omissions was?
A- $11455
B-$11960
C-$12000
D-12150Answer:
Bank Statement 13400 + 300 + 50 – 2400 +1000 -380 = 11970
Can you help with this please as I’m not sure if this is correct, it is not one of the given answers.
Bank balance per bank statement = 13400
Before the charges and dishonoured cheques (not in the cash book) it would be 13400 + 50 + 300 = 13750
Your cash book is more up to date with respect to unpresented cheques and uncredited lodgement so:13750 – 2400 + 1000 = 12350
If there had been no error re the 190, this is what the CB should show, However it is 2 x 190 too low because of the receipt that was credited. So it will show 12,350 – 380 = 11970.
So, I agree with you.
$11,970 and $12,350 are not options in the answer choices.
Can you explain what the correct answer is and how you get to it.
@mspedro1 said:
$11,970 and $12,350 are not options in the answer choices.Can you explain what the correct answer is and how you get to it.
The options given are wrong. The correct answer is $11,970.
Balance as per bank statement = $13,400
Less: Unpresented Cheques = ($2,400)
Add: Uncleared Cheques = $1,000
Corrected Balance as per cash book = $12,000This should be the carried down balance. So it should be on the credit side of T account. Now, the bank charges and dishonoured cheqe should be on the credit side of cash book so it should be added to this balance.
Credit side total = $12,000+$300+$50 = $12,350
The receipt of $190 should be debited twice for correction. So the debit entry would be of $380, and if we subtract this amount from credit side total we will get our brought down total, which is the balance before correction.
Balance b/d = $12,350-$380 = $11970
For finding The available cash the Formula is (Overdrawn Balance+Unpresented cheaques-Undepositeg cheaques or Outstanding Lodgments) and it is therefore debit because the opening balance of Cash in trial balance is DR
Ans no:2 (5675-125+(450×2)=6450
Ans no4: is (B) Because the debit side is more than credit side means credit side of trial balance is less by $50 in here in this question just sale can create CR balance when we add 50 to the credit side both will be equal
And no5: Recieveble Has a debit opening balance when we recieved the payment so our credit side should be decreased with 400 but it is posted instead of credit side to the debit side it should be dual cut from debit side of receivable i.e. (400×2) then we will have 7700 debit balance on receivable control account 7700
And no6:B 195
Opening Balance=300
Total expense=140
IOU contain= 25+10= 35
So the Solution is= 300-140+35=195
Ans no7: Dr: Grass wages Expense
Cr: Wages Control account
If I m wrong please tell me sir
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