A cheque for $3,000 received from a debtor was deposited at the bank but no journal entry was made to record the transaction in the cash book. ii. The repayment of a mortgage is made on behalf of the business by the bank on the authority of a standing order. The payment of $18,000 for the month of November 2010 was not recorded in the cash book. iii. A $36,900 deposit made to the bank on November 30, 2010, did not appear on the bank statement. iv. A cheque for $67,000 which was paid to a creditor was incorrectly recorded in the cash book as $76,000. v. Bank charges of $2,400 appeared on the bank statement only. vi. The direct transfer of $10,000 from Fidel’s bank to the bank of the supplier was not recorded in the cash book. vii. Cheques amounting to $41,000 that were paid to suppliers and creditors did not appear on the bank statement. viii. A deposit of $25,000 made by Federal Trading appeared on the bank statement of Fidel Trading. ix. The bank account in the cash book of Fidel Trading reflected an overdraft of $12,800 on November 30, 2010. Required: 1. Prepare Fidel Trading’s adjusted cash book for November 30th 2010. 2. Prepare the necessary journal entries for Fidel Trading. 3. Prepare Fidel Trading’s bank reconciliation statement for November 30th, 2010
A cheque for $3,000 received from a debtor was deposited at the bank but no journal
entry was made to record the transaction in the
ii. The repayment of a mortgage is made on behalf of
the business by the bank on the authority of a
standing order. The payment of $18,000 for the
month of November 2010 was not recorded in the
cash book.
iii. A $36,900 deposit made to the bank on November
30, 2010, did not appear on the bank statement.
iv. A cheque for $67,000 which was paid to a creditor
was incorrectly recorded in the cash book as
$76,000.
v. Bank charges of $2,400 appeared on the bank statement only.
vi. The direct transfer of $10,000 from Fidel’s bank to the bank of the supplier was not
recorded in the cash book.
vii. Cheques amounting to $41,000 that were paid to suppliers and creditors did not appear
on the bank statement.
viii. A deposit of $25,000 made by Federal Trading appeared on the bank statement of Fidel
Trading.
ix. The bank account in the cash book of Fidel Trading reflected an overdraft of $12,800 on
November 30, 2010.
Required:
1. Prepare Fidel Trading’s adjusted cash book for November 30th 2010.
2. Prepare the necessary journal entries for Fidel Trading.
3. Prepare Fidel Trading’s
Step by step
Solved in 4 steps with 3 images
