You are the bookkeeper of Subi Renovations. You undertake a bank reconciliation at the end of every month. Subi Renovations received its bank statement for the month ending 31 July 2021. The bank reconciliation at the end of last month showed a deposit in transit of $14,040 and two outstanding cheques (no. 363 for $3,672 and no. 371 for $7,560). The adjusted cash balance in the entity’s records was $127,566 debit at the end of June. Below are the entity’s July bank statement and the entity’s book records that indicate the deposits made and cheques written during the month of July: AU Bank - Bank Statement For the period 01/03/2021 – 31/03/2021 Subi Traders, NSW Dr Cr Balance $ Balance brought forward 124,758 CR 1 July Deposit 14,040 138,798 CR 3 July Deposit 12,744 151,542 CR July Cheque # 382 5,616 145,926 CR 6 July Deposit 7,344 153,270 CR 8 July # 371 7,560 145,710 CR 9 July Deposit 9,072 154,782 CR 12 July Deposit 4,536 159,318 CR July # 384 7,560 151,758 CR 13 July # 383 18,360 133,398 CR 15 July Deposit 17,496 150,894 CR July # 387 15,984 134,910 CR 20 July Deposit 6,048 140,958 CR 22 July # 385 14,688 126,270 CR 26 July Deposit 16,416 142,686 CR 29 July # 386 13,608 129,078 CR 30 July # 380 9,288 119,790 CR 31 July interest 414 120,204 CR 31 July Transaction fees 234 119,970 CR Holmes Renovations’ Book Records Date Deposits made Cheques written $ $ No. $ July 3 12,744 5,184 # 379 6 7,344 9,288 # 380 9 9,072 7,452 # 381 12 4,536 5,616 # 382 15 17,496 18,360 # 383 20 6,048 7,560 # 384 26 16,416 14,688 # 385 29 13,608 7,776 # 386 $87,264 15,984 # 387 $91,908 The cash at bank account balance on 31 July was $122,922. In reviewing cheques, a mistake was discovered: Cheque no. 386, written for supplies expenses of $13,608, was recorded in the general journal as $7,776. Required: As the entity does not use special journals, prepare the necessary general journal entries to bring the cash at bank account up to date as at 31 July 2021. Prepare a bank reconciliation statement for Subi Renovations at 31 July 2021. Please ensure you indicate the balance of each amount with either a debit or credit in the bank reconciliation statement.
You are the bookkeeper of Subi Renovations. You undertake a bank reconciliation at the end of every month. Subi Renovations received its bank statement for the month ending 31 July 2021. The bank reconciliation at the end of last month showed a deposit in transit of $14,040 and two outstanding cheques (no. 363 for $3,672 and no. 371 for $7,560). The adjusted cash balance in the entity’s records was $127,566 debit at the end of June.
Below are the entity’s July bank statement and the entity’s book records that indicate the deposits made and cheques written during the month of July:
|
AU Bank - Bank Statement For the period 01/03/2021 – 31/03/2021 Subi Traders, NSW |
||||||
|
|
|
|
Dr |
Cr |
Balance $ |
|
|
|
|
Balance brought forward |
|
|
124,758 |
CR |
|
1 |
July |
Deposit |
|
14,040 |
138,798 |
CR |
|
3 |
July |
Deposit |
|
12,744 |
151,542 |
CR |
|
|
July |
Cheque # 382 |
5,616 |
|
145,926 |
CR |
|
6 |
July |
Deposit |
|
7,344 |
153,270 |
CR |
|
8 |
July |
# 371 |
7,560 |
|
145,710 |
CR |
|
9 |
July |
Deposit |
|
9,072 |
154,782 |
CR |
|
12 |
July |
Deposit |
|
4,536 |
159,318 |
CR |
|
|
July |
# 384 |
7,560 |
|
151,758 |
CR |
|
13 |
July |
# 383 |
18,360 |
|
133,398 |
CR |
|
15 |
July |
Deposit |
|
17,496 |
150,894 |
CR |
|
|
July |
# 387 |
15,984 |
|
134,910 |
CR |
|
20 |
July |
Deposit |
|
6,048 |
140,958 |
CR |
|
22 |
July |
# 385 |
14,688 |
|
126,270 |
CR |
|
26 |
July |
Deposit |
|
16,416 |
142,686 |
CR |
|
29 |
July |
# 386 |
13,608 |
|
129,078 |
CR |
|
30 |
July |
# 380 |
9,288 |
|
119,790 |
CR |
|
31 |
July |
interest |
|
414 |
120,204 |
CR |
|
31 |
July |
Transaction fees |
234 |
|
119,970 |
CR |
|
Holmes Renovations’ Book Records |
||||
|
Date |
Deposits made |
Cheques written |
||
|
|
$ |
$ |
No. |
$ |
|
July 3 |
12,744 |
5,184 |
# 379 |
|
|
6 |
7,344 |
9,288 |
# 380 |
|
|
9 |
9,072 |
7,452 |
# 381 |
|
|
12 |
4,536 |
5,616 |
# 382 |
|
|
15 |
17,496 |
18,360 |
# 383 |
|
|
20 |
6,048 |
7,560 |
# 384 |
|
|
26 |
16,416 |
14,688 |
# 385 |
|
|
29 |
13,608 |
7,776 |
# 386 |
|
|
|
$87,264 |
15,984 |
# 387 |
|
|
|
|
$91,908 |
|
The cash at bank account balance on 31 July was $122,922.
In reviewing cheques, a mistake was discovered: Cheque no. 386, written for supplies expenses of $13,608, was recorded in the general journal as $7,776.
Required:
- As the entity does not use special journals, prepare the necessary general
journal entries to bring the cash at bank account up to date as at 31 July 2021. - Prepare a
bank reconciliation statement for Subi Renovations at 31 July 2021. Please ensure you indicate the balance of each amount with either a debit or credit in the bank reconciliation statement.
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