Question

A comparison of the Jan 2000 bank reconciliation statement and the Feb 2000 cash journals with the Feb 2000 bank statement of PK holdings revealed the following:

(a).... Bank charges of R63 have not yet been taken into account.
(b).... A cheque of R316, for telephone expenses, was recorded in the cash payments journal as R361.
(c).... A deposit of R490 did not appear on the bank statement.
(d).... The bank erroneously debited the entity’s bank account with interest of R340.
(e).... Cheques to the amount of R1 210 were still outstanding.

Balances at 30 June 2019:

R

Bank account (favourable) (provisional) before the above transactions were taken into account.
117
Balances at 31 Jan 2000:


Bank statement
690

Bank account
1 900

what is the balance of the bank + is it favorable or unfavorable

Answer 1

(Amount in R)
Bank Balance as per books as on 31 Jan 2000	1,900
Less- Bank charges not yet booked	-63
Add-: Check recorded at incorrect value (R361 - R316)	45
Less-: Check deposited but not cleared	-490
Less-: Bank Interest not yet recorded	-340
Add-: Check not yet cleared	210
Bank Balance as per books as on 28 Feb 2000	1,262

Bank Balance shows a favorable balance R1,262. (Favorable)

Note -:

1. Bank charges currently needs to be deducted from bank book. Later on after reversal from bank will be credit to bank book.