- November 26, 2022 at 11:55 pm #672703
Sorry to ask one more question but I’m confused with different terms being used for uncleared cheques and unpresented cheques. Please clear this to me.
1. Uncleared cheques are also called Lodgements not yet credited.
2. Unpresented cheques are also called Oustanding cheques and Cheques not yet debited.November 27, 2022 at 9:26 am #672733
1 It depends whether they are cheques we have received or cheques we have paid. Uncleared just means that they have not yet appeared on the bank statement.
2. Correct.November 28, 2022 at 11:10 am #672794
1. That means it depends whether uncleared cheques are cheques we have received from customers or we have paid to suppliers but unpresented cheques are always cheques we have paid to the supplier but they are outstanding (not presented to the bank)?
2. How do we make adjusting entries of adjusted entries into the cash account. Can you give example from your illustration in the notes?
3. Is it correct that we make adjusting entries of cash account only?
Thank you so much. You’re GREAT!November 29, 2022 at 4:09 pm #672868
2. But I do show some adjusting entries in my lectures working through the examples in the notes. They are not so much adjusting entries but are making entries that should have already been made but haven’t been made. For example, if we have paid bank charges then it should have been entered in the cash account. If it hasn’t been entered then we must enter it and so credit cash and debit bank charges.
3. We cannot make entries in the bank statement – it is the bank who makes entries! In the reconciliation statement we are simply making sure that we can explain why the bank statement balance is different from the cash account balance.December 1, 2022 at 7:16 pm #673072
Can you please correct my adjusting entries that we will make in nominal ledgers…
DR Dishonored cheques (expense in SOPL)
Profit credited by bank:
Payment debited by bank:
DR Standing order (expense in SOPL)
CR CashDecember 2, 2022 at 7:06 am #673088
They are correct except for error correction – the entry for that depends on what the error was.
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