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Bank Reconcialiation
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Bank Reconcialiation Practice question for exam
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Eli Corp. has just received its August 31 bank statement, which is summarized as follows:Provincial Bank - Bank Statement
Date Debits Balance
A.ug 1 Opening balance
9,370
Aug3 Deposit
14,000 23,370
Aug3 Cheque.No. 1353 1,645 21,725
Aug4 Note collected for depositor
1,040 22,765
Aug 10 Cheque, No. 1356
5,500 17,265
Aug 10 Cheque, No. 1358
6,200 11,065
Aug 11 Cheque, No. 1354
4,100 6,965
Aug 16 Deposit
8,200 15,165
Aug19 Cheque.No. 1355
7,620 7,545
Aug23 Cheque.No. 1359
3,390 4,155
Aug26 Deposit
10,000 14,155
Aug30 Cheque, No. 1360
6,035 8,120
Aug31 Bank service charges
30 8,090
The general ledger Cash account contained the following information for the month of August:
Cash
Balance, August 1 11,360 Disbursements in August 35,040
Receipts during August 34,000
1) The note collected by the bank included $40 in interest and was in payment of a note receivable.
2) A deposit of $3,800 was made on August 30.
3) Cheque No.1357 was written in August in the amount of $1,050 and is included in the company's
disbursements amount for August.
4) There were postdated cheques from customers (for September 1) in the amount of $540.
5) The bookkeeper improperly entered cheque No.1353 in the general ledger at $1,465. The cheque was
actually written for $1,645 for supplies (expense).
6) The company collected cash on August 31 of $310 and deposited it in the bank the same day.
Required:
a) Prepare a bank reconciliation dated August 31, proceeding to a correct cash balance.
b) Prepare any journal entries that are needed to make the cash general ledger correct and complete.
c) What amount of cash should be reported on the August 31 statement of financial position?
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