Information about Bond Ltd\'s cash position for the month of January 2017 is pre
ID: 2566168 • Letter: I
Question
Information about Bond Ltd's cash position for the month of January 2017 is presented below: 1. The general ledger Cash at Bank account had a balance of $97 624 on 31 January 2017. 2. The bank statement reported a bank balance of $82 368 on 31 January 2017 3. Outstanding cheques at the end of January 2017 were: no. 4567, $2 896; no. 4568, $168; no. 4571, $140 and no. 4573, $820. 4. Cash receipts of $20 180 for 31 January 2017 were placed in the bank's night safe on 31 January 2017 and were not included in the January 2017 bank statement. 5. Comparison of the presented cheques with the entries in the cash payments journal disclosed that cheque no. 4553 for $1 692, for purchases expense, had been wrongly recorded in the cash payments journal as $1 728. 6. Included on the bank statement were: (a)A dishonoured cheque written by William Ltd, a client, for $272. (b)A credit for an electronic transfer from a customer of $1 288 and a credit for interest earned of $88. (c) Account and transaction fees, $240. Required: Prepare a bank reconciliation statement as at 31 January 2017 (including adjustments to the company's internal cash record).Explanation / Answer
Bank Reconciliation statement as at 31st january 2017 is as prepared below:
Bond's Ltd Bank Reconciliation Jan 31, 2017 Particulars Amount ($) Amount ($) Cash balance according to bank statement 82,368.00 Add: Deposit of OJan 31, not recorded by bank 20,180 Less: Outstanding checks 4567 2,896 4568 168 4571 140 4573 820 Adjusted cash balance per bank 98,524 Cash balance according to company's records 97,624.00 Add: Proceeds of Note collected by bank, including $88 interest 1,376 Error in recording check 36 Less: Account and transaction fees 240 Dishonoured cheque 272 Adjusted cash balance as per books 98,524