Bank Reconciliation Statement | Solved example 2

 

Rocky’s Cash Book (Bank Column only) for the month of June 2008 was as follows:


Dr.

 

($)

Cr.

 

($)

June 1

Balance b/f

600

June 3

Tim

90

June 14

Cash

225

June 19

Sam

270

June 26

Roby

60

June 23

Rakesh

1050

June 30

Balance hint1

450

 

 

 

 

 

1410

 

 

1410

The following Bank Statement was received in early July 2008:


2008

Details

Payments

Receipts

Balance

June 1

Balance brought forward

 

 

520

1

Error corrected-contra 31 May

hint 2

80

600

14

Cash

 

225

825

15

Tim

90

 

735

20

Banker’s Order-fire insurance

85

 

650

21

Sam

270

 

380

26

Roby

 

60

440

29

Unpaid cheque –Roby

60

 

380

30

Dividend

 

90

hint 3
470

You may assume that the bank balance was successfully reconciled at the end of March.

  1. Bring the Cash Book up to date, starting with the balance at 30 June 2008.
  2. Prepare a Statement, under its correct title, to reconcile the difference between your amended Cash Book balance and the balance in the Bank Statement on 30 June 2008.
  3. State the amount of the up-dated bank balance.hint 4

Hint 1
This is a credit balance i.e. an overdraft
Hint 2
This entry has already appeared in Cash Book in May. Note the date 31 May. Note also the difference between opening balance in Cash Book ($600) and opening balance in Bank Statement ($520) is $80. So no adjustments in June.
Hint 3
This is a credit balance. A credit balance in Bank Statement is equivalent to a debit balance in Cash Book.
Hint 4
Updated means, after all necessary adjustments have been made.


Solution

1. Cash Book

New Youtube Channel - ThinkIGCSE

Hi Everyone, I have launched a new YouTube channel with more than a 100 videos on  Economics and Business Studies, tailored specifically for IGCSE and A Level and IBDP students.

Subscribe now and join us on this learning journey: @thinkIGCSE

Exciting News!

IMPORTANT MESSAGE

Quizzes and worksheets on this website have been developed in Flash format. Flash is no more supported by browsers. Therefore, you might see blank pages on some instances. Install Flash player plugin for Chrome from Chrome Web Store. Click here 

Similarly, for other web browsers you will have to activate the relevant flash player plugins.

JOIN OUR ONLINE COURSES

WHO'S ONLINE

We have 174 guests and one member online

Save
Cookies user preferences
We use cookies to ensure you to get the best experience on our website. If you decline the use of cookies, this website may not function as expected.
Accept all
Decline all
Read more
Analytics
Tools used to analyze the data to measure the effectiveness of a website and to understand how it works.
Google Analytics
Our website uses Google Analytics to understand how you interact with our site and improve your browsing experience. These cookies collect information in an anonymous form, including the number of visitors to the site, where visitors have come from, and the pages they visited. The data helps us analyze trends and user behavior to enhance our website's functionality and content.
Accept
Decline
Marketing
Set of techniques which have for object the commercial strategy and in particular the market study.
Marketing
Our website uses Google marketing cookies to deliver personalized ads and measure the effectiveness of our advertising campaigns. These cookies track your online activity to help us show you relevant ads on Google services and partner websites.
Accept
Decline