Answer:
Required 1.
<u>Bank Reconciliation Statement as at 31 July</u>
Balance at bank as per updated Cash Book $28,192
Add Unpresented Cheques
Check 1429 $1,248
Check 1430 $140 $1,388
Less Lodgements not yet credited ($790)
Balance as per Bank Statement $28,790
Required 2.
Journal Entries :
J1
Cash $14,300 (debit)
Accounts Receivable : Foncier Ricard $14,300 (credit)
J2
Accounts Payable : Central Common $261 (debit)
Cash $261 (credit)
J3
Check 1425 $30 (debit)
Cash $30 (credit)
Explanation:
The first step is to update the Cash Book Bank Balance as follows :
<u>Debit :</u>
Balance as at July 31 $14,183
Credit Transfer : Foncier Ricard $14,300
Totals $28,483
<u>Credit:</u>
Check 1425 understated ($99 - $69) $30
Direct Debit : Central Common $261
Cash Book Updated Balance (Balancing figure) $28,192
Totals $28,483
Then prepare a Bank Reconciliation Statement as at 31 July :
<u>Bank Reconciliation Statement as at 31 July</u>
Balance at bank as per updated Cash Book $28,192
Add Unpresented Cheques
Check 1429 $1,248
Check 1430 $140 $1,388
Less Lodgements not yet credited ($790)
Balance as per Bank Statement $28,790
Journal Entries :
J1
Cash $14,300 (debit)
Accounts Receivable : Foncier Ricard $14,300 (credit)
J2
Accounts Payable : Central Common $261 (debit)
Cash $261 (credit)
J3
Check 1425 $30 (debit)
Cash $30 (credit)
