Question

Part>1

Use the following information and prepare the May bank reconciliation:

• Bank service charge for the month 40.00

• Cheque from J. Harvey dishonoured as insufficient funds 3200

• Interest earned during the month 32.

• Unpresented cheques at month end 11,553 (Chq No. 37 for $11,000 and Chq No. 39 for $553)

• Balance per bank statement at end of month 144,223 Cr • Outstanding deposits at month end 7,980

Part 2>

What journal entries are required to be entered into the Cash Receipts Journal and Cash Payments Journal? Please state which, if any, of these journals needs to be entered with bracketed amounts.

[Note: You do not need to provide the actual journal debit and credit entries. Simply state (describe) which additional transaction journals would be required.]

Answer 1

Solution:(1) Bank reconciliation statement:

Particulars	Amount($)
Ending balance per bank statement	144,223 (Cr.)
Add: Outstanding deposit	7,980
	152,203
Less: Unpresented cheques
Cheque no. 37	11,000
Cheque no. 39	553
Balance as per Cash at bank account	140,650 (Cr.)

Solution:(2)

Cash receipts journal	Amount($)
Interest earned during the month	32
Cheque dishonoured	(3,200)
Cash payments journal	Amount($)
Bank service charge	40