Answer:
A.
*Workings for Adjusted Cash book.
Balance as at June 30 2013 = $6,400
Add Checks not yet presented = $700
Deduct Deposits not yet credited = ($19,000 minus $18,000) = $1,000
Deduct Bank Charges = $30
Adjusted Balance = $6,070
*Bank reconciliation statement as at June 30 2013
June 30 Closing Bank Statement = $6,070
Balance per adjusted cash book (above) = $6,070
Difference = $0
B. Journal entries required :
Dr. Cash with $700
Cr. Bank Account with $700
(Being un-presented checks for the month)
Dr. Bank charges Account with $30
Cr. Bank Account with $30
(Being bank charges in June)
Dr. Cash with $1,000
Cr. Bank with $1,000
(Being deposits not yet credited to Bank in June)
C. Balance in the reconciled account is $6,070
D. Adjusted cash balance = $6,070
Add cash in hand = $300
Total cash Account = $6,370.
Explanation:
A Bank Reconciliation statement is approach conducted by the Treasury analyst to verify that the entries in their bank and the records maintained in the office have a perfect tie. Except for bank charges which will be included to the adjusted cash book, the entries in either should perfectly mirror the other.
The steps are to adjust the cashbook to cover the entries not yet recognized in the bank records . and then comparing this balance to the balance in the bank statement.
A.
*Workings for Adjusted Cash book.
Balance as at June 30 2013 = $6,400
Add Checks not yet presented = $700
Deduct Deposits not yet credited = ($19,000 minus $18,000) = $1,000
Deduct Bank Charges = $30
Adjusted Balance = $6,070
*Bank reconciliation statement as at June 30 2013
June 30 Closing Bank Statement = $6,070
Balance per adjusted cash book (above) = $6,070
Difference = $0
B. Journal entries required :
Dr. Cash with $700
Cr. Bank Account with $700
(Being un-presented checks for the month)
Dr. Bank charges Account with $30
Cr. Bank Account with $30
(Being bank charges in June)
Dr. Cash with $1,000
Cr. Bank with $1,000
(Being deposits not yet credited to Bank in June)
C. Balance in the reconciled account is $6,070
D. Adjusted cash balance = $6,070
Add cash in hand = $300
Total cash Account = $6,370.
