Preparing Bank reconciliation & any journal entries; The following information i
ID: 2394244 • Letter: P
Question
Preparing Bank reconciliation & any journal entries;
The following information is for Neopolitan Ltd in July
1.Cash balance per bank, July 31, $10,670
2. Cash balance per general ledger cash account, July 31, $8,953
3. Bank Service Charge, $40
4. Deposits in Transit, $1,968
5. Electronic receipts from customers in payment of their accounts, $1,276, not previously recorded by the company
6. Outstanding cheques, $2,359
7. Cheque #373 was correctly written in the amount of $890 but was incorrectly recorded by the company’s bookkeeper at $980.
Instructions
a) Prepare the bank reconciliation at July 31
b) Prepare any journal entries required from the reconciliation
Explanation / Answer
Solution a:
Solution b:
Neopolitan Ltd Bank Reconciliation - July 31 Bank's Cash balance Company's cash balance Particulars Amount Particulars Amount Ending balance as per Bank Statements $10,670.00 Ending Balance as per cash books $8,953.00 Additions: Additions: Outstanding cash receipt $1,968.00 Electronic receipt from customer $1,276.00 Incorrect recording of check no 373 ($980 - $890) $90.00 Deductions: Deductions: Outstanding Checks $2,359.00 Bank Service Charge $40.00 Up to date cash balance as per bank $10,279.00 Up to date cash balance as per books $10,279.00