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Q.2 ABC Co. reports the following information concerning cash balances and cash trausactions for the month of September: 1.Cash balance per bank statement as of September 30 was Rs.20,893.25. 2.Two debit memoranda accompanied the bank statement: one for Rs. 10 was for service charges for the month; the oher for Rs.64.60 was attached to an NSF check from A.Smith. 3.Included with the bank statement was Rs.69 credit memorandum for interest carned on the bank account ia September. 4.The paid checks retumed with the September bank statement disclosed an error in Co's cash records. Check no. 851 for Rs.77.44 for telephone expense had erroneously been listed in the cash payments journal as Rs.44.77. 5.A collection charge for Rs.26.00 was erroneously deducted from the account by the bank. Notice that this was the bank's sIror.

Q.2 ABC Co. reports the following information concerning cash balances and cash trausactions for the month of September: 1.Cash balance per bank statement as of September 30 was Rs.20,893.25. 2.Two debit memoranda accompanied the bank statement: one for Rs. 10 was for service charges for the month; the oher for Rs.64.60 was attached to an NSF check from A.Smith. 3.Included with the bank statement was Rs.69 credit memorandum for interest carned on the bank account ia September. 4.The paid checks retumed with the September bank statement disclosed an error in Co's cash records. Check no. 851 for Rs.77.44 for telephone expense had erroneously been listed in the cash payments journal as Rs.44.77. 5.A collection charge for Rs.26.00 was erroneously deducted from the account by the bank. Notice that this was the bank's sIror.

College Accounting (Book Only): A Career Approach
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 1PA
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Q.2 ABC Co. reports the following information concerning cash balances and cash trausactions for the month of September: 1.Cash balance per bank statement as of September 30 was Rs.20,893.25. 2.Two debit memoranda accompanied the bank statement: one for Rs. 10 was for service charges for the month; the oher for Rs.64.60 was attached to an NSF check from A.Smith. 3.Included with the bank statement was Rs.69 credit memorandum for interest carned on the bank account ia September. 4.The paid checks retumed with the September bank statement disclosed an error in Co's cash records. Check no. 851 for Rs.77.44 for telephone expense had erroneously been listed in the cash payments journal as Rs.44.77. 5.A collection charge for Rs.26.00 was erroneously deducted from the account by the bank. Notice that this was the bank's error. 6.Cash eceipts of September 30 amounting to Rs.585.25 were mailed to the bank too late to be included in the September bank statement. 7.Checks oulstanding as of September 30 were as follows: no.860 for Rs.151.93, no.867 for Rs.82.46, and no.8 69 for Rs.123.61 The cash account showed the following entries during September: Sept. 01.balance Sept. 30.month's receipts Rs.18,341.82 14,441.58 CASH Sept.30. month's payments Rs.I1,598.63 REQUIRED: 1.Prepare a bank reconciliation statement at September 30. 2Freyarethe necessary adjusting entries in general journal form. nScanner
Transcribed Image Text:Q.2 ABC Co. reports the following information concerning cash balances and cash trausactions for the month of September: 1.Cash balance per bank statement as of September 30 was Rs.20,893.25. 2.Two debit memoranda accompanied the bank statement: one for Rs. 10 was for service charges for the month; the oher for Rs.64.60 was attached to an NSF check from A.Smith. 3.Included with the bank statement was Rs.69 credit memorandum for interest carned on the bank account ia September. 4.The paid checks retumed with the September bank statement disclosed an error in Co's cash records. Check no. 851 for Rs.77.44 for telephone expense had erroneously been listed in the cash payments journal as Rs.44.77. 5.A collection charge for Rs.26.00 was erroneously deducted from the account by the bank. Notice that this was the bank's error. 6.Cash eceipts of September 30 amounting to Rs.585.25 were mailed to the bank too late to be included in the September bank statement. 7.Checks oulstanding as of September 30 were as follows: no.860 for Rs.151.93, no.867 for Rs.82.46, and no.8 69 for Rs.123.61 The cash account showed the following entries during September: Sept. 01.balance Sept. 30.month's receipts Rs.18,341.82 14,441.58 CASH Sept.30. month's payments Rs.I1,598.63 REQUIRED: 1.Prepare a bank reconciliation statement at September 30. 2Freyarethe necessary adjusting entries in general journal form. nScanner
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