raders received its bank statement for the month ending 31 May 2021. The bank reconciliation at the end of April showed a deposit in transit of $11,700 and two outstanding cheques (no. 663 for $3,060and no. 671 for $6,300). The adjusted cash balance in the entity’s records was $106,305 debit at the end of April. Below are theentity’s May bank statement and the entity’s book records that indicate the deposits made and cheques written during the month of May: AU Bank - Bank Statement For the period 01/05/2021 – 31/05/2021 Mel Traders Dr Cr Balance $ Balance brought forward 103,965 CR 1 May Deposit 11,700 115,665 CR 3 May Deposit 10,620 126,285 CR May Cheque # 682 4,680 121,605 CR 6 May Deposit 6,120 127,725 CR 8 May # 671 6,300 121,425 CR 9 May Deposit 7,560 128,985 CR 12 May Deposit 3,780 132,765 CR May # 684 6,300 126,465 CR 13 May # 683 15,300 111,165 CR 15 May Deposit 14,580 125,745 CR May # 687 13,320 112,425 CR 20 May Deposit 5,040 117,465 CR 22 May # 685 12,240 105,225 CR 26 May Deposit 13,680 118,905 CR 29 May # 686 11,340 107,565 CR 30 May # 680 7,740 99,825 CR 31 May interest 345 100,170 CR 31 May Transaction fees 195 99,975 CR Mel Traders’ Book Records Date Deposits made Cheques written $ No. $ May 3 10620 # 679 4320 6 6120 # 680 7740 9 7560 # 681 6210 12 3780 # 682 4680 15 14580 # 683 15300 20 5040 # 684 6300
You are the bookkeeper of Mel Traders. You undertake a bank reconciliation at the end of every month. Mel Traders received its bank statement for the month ending 31 May 2021. The bank reconciliation at the end of April showed a deposit in transit of $11,700 and two outstanding cheques (no. 663 for $3,060and no. 671 for $6,300). The adjusted cash balance in the entity’s records was $106,305 debit at the end of April.
Below are theentity’s May bank statement and the entity’s book records that indicate the deposits made and cheques written during the month of May:
|
AU Bank - Bank Statement For the period 01/05/2021 – 31/05/2021 Mel Traders |
||||||
|
|
|
|
Dr |
Cr |
Balance $ |
|
|
|
|
Balance brought forward |
|
|
103,965 |
CR |
|
1 |
May |
Deposit |
|
11,700 |
115,665 |
CR |
|
3 |
May |
Deposit |
|
10,620 |
126,285 |
CR |
|
|
May |
Cheque # 682 |
4,680 |
|
121,605 |
CR |
|
6 |
May |
Deposit |
|
6,120 |
127,725 |
CR |
|
8 |
May |
# 671 |
6,300 |
|
121,425 |
CR |
|
9 |
May |
Deposit |
|
7,560 |
128,985 |
CR |
|
12 |
May |
Deposit |
|
3,780 |
132,765 |
CR |
|
|
May |
# 684 |
6,300 |
|
126,465 |
CR |
|
13 |
May |
# 683 |
15,300 |
|
111,165 |
CR |
|
15 |
May |
Deposit |
|
14,580 |
125,745 |
CR |
|
|
May |
# 687 |
13,320 |
|
112,425 |
CR |
|
20 |
May |
Deposit |
|
5,040 |
117,465 |
CR |
|
22 |
May |
# 685 |
12,240 |
|
105,225 |
CR |
|
26 |
May |
Deposit |
|
13,680 |
118,905 |
CR |
|
29 |
May |
# 686 |
11,340 |
|
107,565 |
CR |
|
30 |
May |
# 680 |
7,740 |
|
99,825 |
CR |
|
31 |
May |
interest |
|
345 |
100,170 |
CR |
|
31 |
May |
Transaction fees |
195 |
|
99,975 |
CR |
|
Mel Traders’ Book Records |
||||
|
Date |
Deposits made |
Cheques written |
||
|
|
|
$ |
No. |
$ |
|
May |
3 |
10620 |
# 679 |
4320 |
|
|
6 |
6120 |
# 680 |
7740 |
|
|
9 |
7560 |
# 681 |
6210 |
|
|
12 |
3780 |
# 682 |
4680 |
|
|
15 |
14580 |
# 683 |
15300 |
|
|
20 |
5040 |
# 684 |
6300 |
|
|
26 |
13680 |
# 685 |
12240 |
|
|
29 |
11340 |
# 686 |
6480 |
|
|
|
$ 72,720 |
# 687 |
13320 |
|
|
|
|
|
$ 76,590 |
The cash at bank account balance on 31 May was $102,435.
In reviewing cheques, a mistake was discovered: Cheque no. 686, written for insurance expenses of $11,340, was recorded in the general journal as $6,480.
Required:
b) Prepare a
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