Question

Practical Exercise

                A company Cashbook and Bank Statement for December2010 appear as follows

                                                                  Cashbook

Dr +		Cr -
2010	$	2010	$
Dec 1 Balance b/d	2800	Dec 8 K.Wong	1600
3 W.Lee	1000	20 C.Kwok	700
10 T.Cheung	2000	29 M.Tang	100
30 S.Sin	1400	31 Balance c/d	4800
Total	7200	Total	7200

Bank Statement

Description	Dr -	Cr +	Balance
2010	$	$
Dec 1 Balance			$2800
3 Cheque deposit		1000	3800
8 Cheque 76343	1600		2200
10 Cheque deposit		2000	4200
11 Dishonored cheque	2000		2200
11 Service charge	30		2170
12 Autopay—Rent	250		1920
20 Cheque 76344	700		1220
31 Bank interest		50	1270
31 Credit transfer ---Commission received		300	1570
31 Balance			1570

Answer 1

The corrected cash book and the bank reconciliation as at december 2010 would appear as follows

Cash book ( Bank column)

Particulars	Amount ($)	Particulars	Amount($)
Baance b/d	4800	T.Cheung(Dishonoured Cheque)	2000
Commission received	300	Bank charges	30
Bank Interest	50	Rent	250
		Balance c/d	2870
	5150		5150

Bank reconciliation statement as at December 2010

Corrected balance in hand as per cash book	2870
Add Unpresented Cheque	100
	2970
Less Bank deposit not yet entered on bank statement	1400
Balance in hand as per Bank statement	1570