Problem 7-5A Date Account Titles and Explanation Debit Credit July 31 31 Problem
ID: 2569017 • Letter: P
Question
Problem 7-5A
Date
Account Titles and Explanation
Debit
Credit
July 31
31
Problem 7-5A
On July 31, Blossom Ltd. had a cash balance of $12,684 in its general ledger. The bank statement from the Caisse Populaire on that date showed a balance of $21,525. A comparison of the bank statement with the Cash account revealed the following:1. The bank statement included service charges and credit card fees of $118. 2. The bank statement included electronic collections from customers on account totalling $5,273. Blossom had not recorded the EFT. 3. A deposit of $3,082 made by another company was incorrectly added to Blossom’s account by the Caisse Populaire. 4. Salaries of $4,162 were paid electronically during the month. The company has already recorded these. 5. Cheques outstanding on June 30 totalled $2,765. Of these, $2,161 worth cleared the bank in July. All cheques written in July cleared the bank in July.
Explanation / Answer
Bank reconciliation Statement Particulars Amount Cash balance per books 12,684.00 Service Charges (118.00) electronic collections from customers on account 5,273.00 Deposit wrongly added to Blossom’s account by the Caisse Populaire. 3,082.00 Recording of salaries in cash book as well as bank book - Cheques outstanding still = 2765 - 2161 604.00 Cash balance per bank 21,525.00 Particulars Dr Amt Cr Amt Bank A/C Dr 5,273.00 To Accounts receivabe 5,273.00 Bank Service charge DR 118.00 To Bank 118.00