Cathy’s Consulting collected its latest bank statement on 1 July 2014. All entri

Question

Cathy’s Consulting collected its latest bank statement on 1 July 2014. All entries appearing in the bank statement that had not been entered into the cash journals were subsequently entered. The cash journals were posted and the resulting balance of the cash at bank account in the ledger at 30 June was $18,263.08 Dr. The balance shown on the bank statement at 30 June was $17,016.62 Cr. The following items recorded in the cash journals did not appear on the bank statement: 1. A cheque deposited by Cathy’s Consulting on 30 June of $2,627.12. 2. Cheques issued by Cathy’s Consulting during June that had not been presented for payment were: Cheque No. 311 $527.26 314 $606.40 316 $283.00 A cheque written for $26 appeared incorrectly in the bank statement as $62. Required: Prepare the bank reconciliation statement at 30 June 2014.

Explanation / Answer

Cathy’s Consulting Bank reconciliation statement at 30 June 2014 Balance as per bank statement $ 17,016.62 Add: Deposited not credited $   2,627.12 $ 19,643.74 Less : Cheques not presented Chq no. 311 $ 527.26 Chq no. 314 $ 606.40 Chq no. 316 $ 283.00 $   1,416.66 $ 18,227.08 Add : bank error (62 - 26) = 36 $        36.00 Cash at Bank balance Cr – 30 June 2014 $ 18,263.08

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