Bank statement – Knowsia

FA – L1 – Q65 – Bank Reconciliations

Demonstrate adjustments needed to KW Ltd's cash book for July 20X9 due to errors and unrecorded transactions.

Question

The following is a summary from the cash book of KW Ltd for July 20X9:

Opening balance	1,530
Receipts	23,104
Payments	23,005
Closing balance	1,629

On investigation it was discovered that:
(i) Bank charges of GH₵15 shown on the bank statement have not been entered in the cash book.
(ii) A cheque drawn for GH₵110 to pay a supplier has been entered in the cash book as a receipt.
(iii) A cheque from a customer for GH₵120, which was banked (and included above in receipts), has been returned by the bank, but this has not been adjusted in the company’s books.
(iv) An error of transposition which occurred in the opening balance of the cash book should have been recorded as GH₵1,350.
(v) Cheques totaling GH₵264 have been sent by post to suppliers but were not presented to the company’s bank until August 20X9.
(vi) The last page of a bank account paying-in book shows a deposit of GH₵1,040 which was not credited to the account by the bank until 1st August 20X9.
(vii) The company’s bank statement at 31st July 20X9 shows a balance of GH₵318.

Required:
(a) Demonstrate any adjustments needed to the company’s accounting records.

(b) Prepare a Bank Reconciliation Statement as at 31st July 20X9.

Answer

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Tags: Adjustments, Bank reconciliation, Bank statement, Cash book, Cheques, Deposits, Error Correction, Financial accounting
Level: Level 1

Topic: Bank reconciliations

FA – L1 – Q57 – Bank reconciliations

Prepare a bank reconciliation for Newman & Co as at 31 August 20X9, correcting errors in the cash book and bank statement.

Question

Following information has been collected from the books of Newman & Co, as at August 31, 20X9:
(a) Balance as per bank book
(b) Cash balance on bank statement
(c) Cheques outstanding on August 31 were as follows:

Cheque No.	GH¢
670	13,353
679	14,152
690	17,108
996	3,535
997	14,430
999	23,629

(d) The company made the following payments into the bank in the last week in August but these had not yet appeared on the bank statement.

GH¢
83,250
144,641

(e) The following matters have been discovered.
(i) Receipt of GH¢15,000 was erroneously recorded on the credit side of the bank book.
(ii) A payment of GH¢12,480 was erroneously recorded on the debit side of the bank book.
(iii) The credit side of the bank book has been overcasted by GH¢4,800.
(iv) The bank statement showed an amount collected by the bank but not shown in the cash book in the amount of GH¢87,188.

Required
Prepare the bank reconciliation as at 31 August.

Answer

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Tags: Adjustments, Bank reconciliation, Bank statement, Cash book, Cheques, Errors, Financial accounting, Overdraft
Level: Level 1

Topic: Bank reconciliations

FA – L1 – Q56 – Bank reconciliations

Reconcile cash book with bank statement for Sandwell Ltd, adjust ledger for unrecorded items.

Question

A company, Sandwell Ltd, receives a bank statement. The balance on its cash book (= bank account in the main ledger) is a debit balance of GH₵1,600,000. In reconciling the cash book balance with the bank statement balance, the accountant discovers that the bank statement does not show cheques received from customers for GH₵8,200,000 and banked, or cheque payments to suppliers for GH₵4,700,000. The bank statement also shows bank charges of GH₵150,000, a direct debit payment of GH₵400,000, and a dishonoured cheque for GH₵300,000. None of these three items have yet been recorded in the ledger.

Required:

What is the balance on the bank statement?
What entries should be made in the company’s ledger accounts when the cash book and the bank statement balances have been reconciled?

Answer

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Tags: Adjustments, Bank charges, Bank reconciliation, Bank statement, Cash book, Direct Debit, Dishonoured Cheque, Errors, Financial accounting, Ledger Entries
Level: Level 1

Topic: Bank reconciliations

FA – L1 – Q55 – Bank reconciliations

Calculate the cash book balance given bank statement details, unrecorded transactions, and ledger discrepancies.

Question

A company, Connelly Enterprises, receives a bank statement showing a credit balance of GH₵7,400,000. On investigation, its accountant discovers that the bank statement does not show cheques received from customers for GH₵16,200,000 and banked, or cheque payments to suppliers for GH₵18,500,000. The bank statement also shows bank charges of GH₵250,000, which have not yet been recorded in the ledger.

Required
What is the current balance on the cash book? (This is the balance on the bank account in the main ledger.)

Answer

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Tags: Bank charges, Bank reconciliation, Bank statement, Cash book, Ledger adjustments, Unpresented cheques
Level: Level 1

Topic: Bank reconciliations

Tag (SQ): Bank statement

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FA – L1 – Q65 – Bank Reconciliations

Demonstrate adjustments needed to KW Ltd's cash book for July 20X9 due to errors and unrecorded transactions.

FA – L1 – Q57 – Bank reconciliations

Prepare a bank reconciliation for Newman & Co as at 31 August 20X9, correcting errors in the cash book and bank statement.

FA – L1 – Q56 – Bank reconciliations

Reconcile cash book with bank statement for Sandwell Ltd, adjust ledger for unrecorded items.

FA – L1 – Q55 – Bank reconciliations

Calculate the cash book balance given bank statement details, unrecorded transactions, and ledger discrepancies.

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FA – L1 – Q65 – Bank Reconciliations

Demonstrate adjustments needed to KW Ltd's cash book for July 20X9 due to errors and unrecorded transactions.

You're reporting an error for "FA – L1 – Q65 – Bank Reconciliations"

FA – L1 – Q57 – Bank reconciliations

Prepare a bank reconciliation for Newman & Co as at 31 August 20X9, correcting errors in the cash book and bank statement.

You're reporting an error for "FA – L1 – Q57 – Bank reconciliations"

FA – L1 – Q56 – Bank reconciliations

Reconcile cash book with bank statement for Sandwell Ltd, adjust ledger for unrecorded items.

You're reporting an error for "FA – L1 – Q56 – Bank reconciliations"

FA – L1 – Q55 – Bank reconciliations

Calculate the cash book balance given bank statement details, unrecorded transactions, and ledger discrepancies.

You're reporting an error for "FA – L1 – Q55 – Bank reconciliations"

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