REVISION – EXTENDED TUTORING PROGRAME

CASH BOOK AND BANK RECONCILIATION STATEMENT

NAME: _______________________________________ DATE: 28TH SEP 2023

1.Manjot has not had time to complete a bank reconciliation for Blossom Your Day for June 2019. He has
provided the following information for events that occurred in June:

• the bank statement for 30 June showed bank interest received of $11

• two cheques did not appear on the bank statement: number 390 for $1500 and number 392 for $8000

• the bank statement for 30 June showed bank charges paid of $5

• $21 500 was deposited in the bank but did not appear on the bank statement

• the bank statement for 30 June showed an overdraft of $855.

(i) Complete and formally balance the cash at bank account for Blossom Your Day.

Cash at bank account

1 Jun Balance 3 044 30 Jun Payments 28 905

30 Jun Receipts 37 000 ------------------------------------------------------------------------------

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(ii) Prepare a bank reconciliation statement as at 30 June 2019.

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 2.On 1 April 2022 Huang’s bank statement showed a different balance from the balance in his cash book.
He identified that the following transactions had not yet been processed by the bank:

• a cheque received from Zhao, $275

• a cheque issued to Lui, $1 350

• cash banked, $1 685

(a) Prepare the bank reconciliation statement at 1 April 2022 showing the bank statement balance at that
date.

On 30 April 2022 Huang checked his bank statement and identified that the following items had not yet
been entered in the cash book:

• a cheque received from Chen, $150, had been returned by the bank as unpaid

• bank charges $40

• bank interest received $35

(b) Prepare the updated cash book at 30 April 2022 showing the bank balance at that date.
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 3.At the close of business on 30 September 2017 the business bank account of Finn Bar showed a balance
of $ 2 314.73 (Dr). On the same date he received a bank statement that showed a balance of $ 2 795.73
(Cr). On investigation he identified the following reasons for the difference.

• Bank charges for the month of September 2017 of $ 84 had been debited directly by the bank but had
not yet been recorded in the cash book.

• An error had occurred when balancing the cash book: the bookkeeper had overcast the total of the debit
entries by $ 160.

• The bank statement included a direct debit for insurance of $ 750, which had not been recorded in the
cash book.

• Cash takings of $ 1 485.55 banked on 30 September 2017 had not yet appeared on the bank statement.

• Two cheques sent to suppliers during the month of September 2017 had not yet been presented for
payment:

• Cheque No: 196 B Hope $ 261.55 • Cheque No: 199 F Faith $ 399.00

• A customer, S King, had paid his account of $ 2 300 by credit transfer directly into Finn Bar’s bank
account. This had not yet been recorded in the cash book.

(a) Prepare the updated bank account for the month of September 2017 and bring down the corrected
balance on 1 October 2017.
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