T. Howard's Cash Book at 2020 September 30 showed debit balance at the bank of $1 024 but the Bank Statement at same date had a credit balance of $262. After comparing the Cash Book with the Bank Statement, the following differences were noted: i. An amount of $142 paid into the bank had not yet appeared on the Statement. ii. Bank interest of $60 in respect of an earlier overdraft had been charged by the bank. iii. Cheques issued for $560 had not been presented for payment. iv. A cheque received for $800 and debited in the Cash Book was returned unpaid by the bank because of lack of funds. v. Funds of $1 120 paid into the bank had been entered in the Cash Book as $1 000. vi. The bank had made a standing order payment for insurance of $480 which had not been recorded in the Cash Book. vii. The bank had received by direct credit transfer a payment of $40 due to Howard from G. Keith. Prepare the following: A. Updated Cash Book of T. Howard. B. Bank Reconciliation Statement as at 2021 September 30.
T. Howard's
the Bank Statement at same date had a credit balance of $262.
After comparing the Cash Book with the Bank Statement, the following differences were noted:
i. An amount of $142 paid into the bank had not yet appeared on the Statement.
ii. Bank interest of $60 in respect of an earlier overdraft had been charged by the bank.
iii. Cheques issued for $560 had not been presented for payment.
iv. A cheque received for $800 and debited in the Cash Book was returned unpaid by the
bank because of lack of funds.
v. Funds of $1 120 paid into the bank had been entered in the Cash Book as $1 000.
vi. The bank had made a standing order payment for insurance of $480 which had not been
recorded in the Cash Book.
vii. The bank had received by direct credit transfer a payment of $40 due to Howard from G.
Keith.
Prepare the following:
A. Updated Cash Book of T. Howard.
B.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
