On 31 May 20X2 the bank statement of Harrison Ltd showed a balance of £26,500. As part of the bank reconciliation process, the following came to light:cheques from customers totalling £7,000, which had been banked by Harrison Ltd.’s book-keeper on 30 May, had not yet been processed by the banka customer cheque for £2,540 which had been credited to the bank account had been recorded in error in the cash book as £2,450a cheque for £8,000 sent by Harrison Ltd to a supplier had not yet been presented by the recipientYou are required to deduce the balance currently shown as at 31 May 20X2 in Harrison Ltd’s accounting records.

Bank reconciliation is a statement to identify and document the differences between balance as per…

Answered: On 31 May 20X2 the bank statement of…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 3E

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On 31 May 20X2 the bank statement of Harrison Ltd showed a balance of £26,500. As part of the bank reconciliation process, the following came to light:
- cheques from customers totalling £7,000, which had been banked by Harrison Ltd.’s book-keeper on 30 May, had not yet been processed by the bank
- a customer cheque for £2,540 which had been credited to the bank account had been recorded in error in the cash book as £2,450
- a cheque for £8,000 sent by Harrison Ltd to a supplier had not yet been presented by the recipient
  
  You are required to deduce the balance currently shown as at 31 May 20X2 in Harrison Ltd’s accounting records.

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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