FA2 Managing Financial Records

Chap 6 Bank Reconciliation Group Activity

Lecturer: Christine Colon, ACCA

Name:
Group: Date:

preparing a bank reconciliation

On 31 July 20X7 the balance on Blyth's bank ledger account was a debit of $52 compared
with a credit balance of $134 shown by his bank statement. He discovered the following:

(a) Cheques drawn by Blyth during July, amounting to $356, $1,732 and $196 had
been entered in the day books but had not been presented at the bank by the end
of the month.

(b) Blyth had forgotten to enter into the day books a standing order for $50.

(c) The bank had incorrectly credited Blyth's account with a dividend receipt of $25
relating to another customer.

(d) Bank charges of $105 shown on the bank statement had not yet been entered in
the day books.

(e) Cheques received from customers amounting to $1,211 were entered in the day
books on 31 July but were not credited on the bank statement until 3 August.

(f) Direct credits from customers of$180 and $31 had been paid directly into the
bank, but no entry had been made in the day books.
(g) The cheque payments day book for July had been undercast by $1,000 (this
means that the total is understated by $1,000).

(h) The statement shows an item 'returned cheque $72'. This has not yet been
accounted for in the day books.

Adjust the bank ledger account and prepare the bank reconciliation statement at 31 July
20X7.