Question

Eleven Supplies recently employed a new cashier. Jim Hopper, the owner, wants to know whether the new cashier is banking the right amount of money. According to the books, cash balance as at 31 May was $20185 and the records for cash receipts and payments are below. Jim confirmed that the bank statement for May 2019 had no errors.

Hawkins Bank			Statement of Account
Account Name		Eleven Supplies		As at	31-May-19
		Hawkins St, Canberra		Statement	111
Account Type		Cheque		Account No.	146-999
	2019	Description	Withdrawals ($)	Deposits   ($)	Balance ($)
	1-May	Balance brought forward			8184	Cr
	2-May	Dishonoured cheque	462		7722	Cr
	6-May	Deposit		2031	9753	Cr
		Cheque no. 821	219		9534	Cr
	12-May	Deposit		1681	11215	Cr
	13-May	Deposit		1031	12246	Cr
	16-May	Deposit		12531	24777	Cr
	18-May	Cheque no. 823	119		24658	Cr
	20-May	Cheque no. 822	11219		13439	Cr
	24-May	Cheque no. 824	819		12620	Cr
	31-May	Bank collection - rent		656	13276	Cr
		Service charge	15		13261	Cr
		Totals at end of period	12853	17930

Cash Receipts Journal			Cash Payments Journal
Date	Dr. Cash		Cheque No.	Cr. Cash
May-05	2031		821	174
May-11	1681		822	119
May-14	1031		823	11219
May-15	12531		824	819
May-31	8251		825	1193
Total	25525		Total	13524

Required:
Prepare Eleven Supplies bank reconciliation at 31 May 2019.

Answer 1

Eleven Supplies
Bank Reconciliation Statement
Month Ended May 19
Cash Balance as per bank statement	13261
Add: Deposit in Transit	8251
Less: Outstanding checks	-1193
Adjusted Cash Balance	20319
Cash balance as per books	20185
Add: Rent Collection	656
Less: Bank Service charges	-15
Error rectification-Check 821	-45
Dishonoured Check	-462
Adjusted Cash Balance	20319