Homework SoursePreparing Bank reconciliation any journal entries The follo
Preparing Bank reconciliation & any journal entries;
The following information is for Neopolitan Ltd in July
1.Cash balance per bank, July 31, $10,670
2. Cash balance per general ledger cash account, July 31, $8,953
3. Bank Service Charge, $40
4. Deposits in Transit, $1,968
5. Electronic receipts from customers in payment of their accounts, $1,276, not previously recorded by the company
6. Outstanding cheques, $2,359
7. Cheque #373 was correctly written in the amount of $890 but was incorrectly recorded by the company’s bookkeeper at $980.
Instructions
a) Prepare the bank reconciliation at July 31
b) Prepare any journal entries required from the reconciliation
Solution
Solution a:
Solution b:
| Neopolitan Ltd | |||
| Bank Reconciliation - July 31 | |||
| Bank\'s Cash balance | Company\'s cash balance | ||
| Particulars | Amount | Particulars | Amount |
| Ending balance as per Bank Statements | $10,670.00 | Ending Balance as per cash books | $8,953.00 |
| Additions: | Additions: | ||
| Outstanding cash receipt | $1,968.00 | Electronic receipt from customer | $1,276.00 |
| Incorrect recording of check no 373 ($980 - $890) | $90.00 | ||
| Deductions: | Deductions: | ||
| Outstanding Checks | $2,359.00 | Bank Service Charge | $40.00 |
| Up to date cash balance as per bank | $10,279.00 | Up to date cash balance as per books | $10,279.00 |
