Question 1 19 marks rading Companys bank statement for the m

Question 1. (19 marks) rading Company\'s bank statement for the month of November showed a The Total T credit balance per bank of $7,000. The company\'s Cash account in the general ledger had a debit balance of $5,659 at 30 November. Other information is as follows: (1) Cash receipts for 30 November recorded on the company\'s books were $5,200 but this amount does not appear on the bank statement. The bank statement shows a debit memorandum for $40 for cheque printing charges. (2) (3) Cheque No. 119 payable to Burns Company was recorded in the cash payments journal and cleared the bank for $248. A review of the accounts payable subsidiary ledger shows a $36 credit balance in the account of Burns Company and that the payment to them should have been for $284. 5,800 (4) (5) The total amount of cheques stil outstanding at 30 November amounted to $ Cheque No. 138 was correctly written and paid by the bank for $409. The cash payment journal reflects an entry for Cheque No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $490. (6) The bank returned a dishonoured cheque from a customer for $560. (7) The bank included a credit memorandum for $1,260, which represents collection of a customer\'s note by the bank for the company; principal amount of the note was $1,200 and interest was $60. Interest has not been accrued

Solution

Bank Reconciliation Balance as per bank 7000 Additions:   Deposit of November $5,200 5200 Deductions $12,200 Outstanding ckecks 5800 5800 Adjusted Bank Balance $6,400.00 Company\'s Book Book balance 5659 Add Proceeds of note including interest 1260 Error made in book (490-409) 81 1341 7000 Deductions Printing charges 40 NSF 560 600 Adjusted Book balance 6400