Free Essay

Mr. Finance

In:

Submitted By uwaimable2
Words 4204
Pages 17
Bank Reconciliation Statements (With answers)

A. Purpose of a bank reconciliation It should be prepared regularly as part of the internal control system of the business to check: a) the accuracy of the cash book b) the accuracy of the bank statement c) that undue delay is not occurring between payments, receipts and their clearance by the bank d) to discover payments made and items received by the bank not entered in the cash book

B. Reasons for differences in bank statement and cash book a) The causes of difference will be fall into one of the following classes: b) Items (not consisting of errors) which appear in the bank statement but which are not in the cash book, e.g., dishonoured cheques or bills, interest and bank charges, standing order (an order made to the bank to make a regular payment), dividends or interest income credited direct to the bank and payments by customers which are paid direct to the bank. c) Items (not consisting of errors) which appear in the cash book but which do not appear in the bank statement. These are confined to outstanding cheques and outstanding deposits. d) Errors made in the compilation of the cash book or the bank statement.

C. Two forms of bank reconciliation are in common usage: 1) The bank balance is reconciled to the balance in the depositor’s records (or the balance in the depositor’s records to the bank balance) 2) Both the bank balance and the balance per depositor’s records are reconciled to a correct balance.

Illustration

|The cash book of J.Jones showed a balance at the bank of $570 in hand on 31 January 19X1. At the same date, the bank statement balance of |
|J.Jones’ account was $446 overdrawn. The difference was accounted for as follows: |
|Cheques for $1 555 sent to creditors on 30 January were not paid by the bank until 8 February. |
|Cheques amounting to $2 520 paid into the bank on 31 January were not credited by the bank until 1 February. |
|A standing order for a charitable subscription of $60 had been paid by the bank on 21 January but no entry had been made in the cash book. |
|A cheque paid by J.Jones for rent on 15 January for $345 had been entered in his cash book as $354. |

Prepare the bank reconciliation statement.

Method 1

|Bank Reconciliation Statement as at 31 January 19X1 |
| |$ | $ |
|Balance per cash book | | 570 |
|Add: Correction of error on rent paid* |9 | |
|Unpresented cheques (outstanding) |1 555 |1 564 |
| | |2 134 |
|Less: Standing order (subscription paid)* |60 | |
|Uncredited deposits (outstanding) |2 520 |2 580 O/D (446)|
|Balance per Bank statement | | |

* Adjustments in cash book: Unadjusted cash book balance 570 Add: correction of error on rent paid 9 Less: Standing order (Subscription paid) (60) Adjusted cash book balance 519

Method 2

|Bank Reconciliation Statement as at 31 January 19X1 |
| |$ |
|Balance per cash book |570 |
|Add: Correction of error on rent paid |9 |
| |579 |
|Less: Charitable subscription paid so |60 |
|Corrected cash book balance |519 |
| | |
| | |
|Balance per Bank statement |O/D (446) |
|Add: Uncredited deposits (outstanding) |2 520 |
| |2 074 |
|Less: Unpresented cheques (outstanding) |1 555 |
|Corrected cash book balance |519 |
| | |
|The journal entry needed is: | |
| | |
|Dr. Donation 60 | |
|Cr. Rent 9 | |
|Cr. Cash 51 | |

Exercise One Kay Rogan’s Cash Book at 30th November 1982 showed an overdrawn position of £3,630 which did not match with her bank statement. Detailed examination of the two records revealed the following: a) The debit side of the cash book had been undercast by £300. b) A cheque for £1,560 in favour of Z Suppliers Ltd., had been omitted by the bank from its statement, the cheque having been debited to another customer’s account. c) A lodgement of £1080 on 30th November had not been credited by the bank. d) Interest amounting to £228 had been debited by the bank but not entered in the cash book.

Required: i. Reconcile the balance of the cash book and bank statement to the corrected bank balance. (Method 2) ii. Reconcile the cash book balance to the balance of the bank. (Method 1)
i)
|Bank Reconciliation Statement as at 30.11.82 |
| |$ |$ |
|Balance as per cash book | |(3630) |
|Add: Debit side of cash book undercast | |300 |
| | | |
| | | |
| | |(3330) |
|Less: Interest not entered in cash book | |228 |
| | | |
| | | |
|Balance as per corrected cash book balance | |3558 |
| | | |
| |$ |$ |
|Balance as per bank statement | |(3078) |
|Add: Uncredited deposite (Bank lodgement) | |1080 |
| | | |
| | | |
| | |(1998) |
|Less: Cheque omitted (Bank error) | |1560 |
| | | |
| | | |
|Balance as per corrected cash book balance | |(3558) |

ii)
|Bank Reconciliation Statement as at 30.11.82 |
| |$ |$ |
|Balance as per cash book | |(3630) |
|Add: Debit side of cash book undercast |300 | |
|Less: Unpresented cheque (Bank error) |1560 |1860 |
| | |(1770) |
| | | |
|Less: Interest not entered in cash book |228 | |
|Add: Uncredited deposite (Bank lodgement) |1080 |1788 |
| | |__ |
|Balance as per bank statement | |4038 |

Exercise Two

Hay has received his bank pass sheets for the year to 30 September 1993. At the date, his balance at the bank amounted to £14,130 whereas his own cash book showed a balance of £20,000. His accountant investigated the matter, and discovered the following discrepancies:

a) Hay had brought down his opening cash book balance of £6,585 as a debit balance instead of as a credit balance. b) Hay had entered a payment of £560 in his cash book as £650. c) Cheques drawn by Hay in July 1993 had not been presented to the bank. d) One of Hay’s customers had agreed to settle their debts £450 by direct debit though nothing was entered in the cash books yet. Unfortunately, the bank had credited the direct debit to another customer’s account.
Required:
i. Make any necessary entries in the cash book as at 30 September 1993. ii. Prepare a bank reconciliation statement as at 30 September 1993.
i)
|Cash Book |
| | | | | | |
| |Balance b/d |20,000 |(a) |Suspense-error of carrying |13,170 |
|(b) |Expense – error of payment |90 | | down (6,585 x 2) | |
| | (650-560) | | | | |
|(d) |Debtors – direct transfer | | | | |
| | from a customer | 450 | |Balance c/d | 7,370 |
| | |20,540 | | |20,540 |
| | | | | | |
|ii) Bank Reconciliation Statement as at 30 September 1993 |
| | |$ |
|Balance as per bank statement | |14,130 |
|Add: Bank error – credited to wrong account | | 450 |
| | |14,580 |
| | | |
|Less: Unpresented cheque |(b.f) | 7,210 |
| | | |
| | | |
|Balance as per corrected bank balance | |7,370 |

Exercise Three

Leslie, a sole trader, received a bank statement for the month of May as follows:
|May | |Dr. |Cr. |Balance | |
|1 |Opening balance | | |85 | |
|3 |123456 |150 | |65 |O/D |
|9 |123450 |42 | |107 |O/D |
|14 |Sundry credit | |210 |103 | |
|18 |Interest |24 | |79 | |
|20 |Sundry credit | |350 |429 | |
|22 |123457 |220 | |209 | |
|23 |123448 |100 | |109 | |
|24 |Standing order – rent |10 | |99 | |
|25 |Sundry credit | |531 |630 | |
|26 |Credit transfer – Mills | |25 |655 | |
|28 |423460 |100 | |555 | |
|30 |123459 |405 | |150 | |
|31 |Closing balance | | |150 | |

For the corresponding period, Leslie's own records contained the following bank account:
|Bank |
|May | |$ |May | |$ |
|14 |Cheque from G. Smith |210 |1 |Balance b/d | |57 |
|20 |Cash Sales |350 |3 |Electricity |123456 |150 |
|25 |Cheque from F Jones |410 |22 |Wages |123457 |222 |
|25 |Cheque from R Black |121 |23 |Purchases |123458 |415 |
|31 |Cheque from W Wayne |196 |30 |Rent |123459 |405 |
|31 |Balance c/d | 9 |31 |Purchases |123460 | 47 |
| | |1 296 | | | |1 296 |

Required:
Prepare the bank reconciliation statement as at 31 May 1993 from the cash book and the bank statement to the corrected bank balance.

Workings: (reconciliation of beginning balances of cash book and bank statement)

The beginning balance of the bank statement $ 85 Less: Unpresented cheques – last month (42+100) 142

The beginning balance of the cash book (57) O/D

|Bank Reconciliation Statement as at 31 May 1993 |
| |$ |$ |
|Balance as per cash book | |(9) O/D |
|Add: Credit transfer - Mills |25 | |
| Error related to a payment in the cash book | 2 |27 |
| | |18 |
| | | |
|Less: Bank interest charge |24 | |
| Standing order |10 |34 |
|Corrected bank balance | |(16) O/D |
| | | |
| | | |
|Balance as per bank statement | |150 |
|Add: Uncredited deposit |196 | |
| Bank error – cheque drawn by the other client |100 |296 |
| | |446 |
| | | |
|Less: Unpresented cheques - 123458 |415 | |
| - 123460 | 47 |462 |
|Corrected bank balance | |(16) O/D |
| | | |

Exercise Four (This example is the continuation of exercise three.)

Leslie continued his business in June 1993 and his bank account was given as follows:

|Bank |
|June | |$ |June | |$ |
|1 |Cheque from A Smith |190 |1 |Balance b/d | |16 |
|15 |Cheque from B Roy |100 |9 |Rates |123462 |230 |
|16 |Cash Sales |450 |19 |Purchases |123463 |505 |
|30 |Cheque from X York |110 |29 |Wages |123464 |120 |
|30 |Cheque from Z Rock | 301 |30 |Balance c/d | | 280 |
| | |1 151 | | | |1 151 |
| | | | | | | |

The corresponding bank statement for the month of June 1993 was:

|June | |Dr. |Cr. |Balance |
|1 |Opening balance | | |150 |
|1 |Sundry credit | |196 |346 |
|1 |Sundry credit | |190 |536 |
|3 |Adjustment | |100 |636 |
|9 |123462 |230 | |406 |
|25 |Sundry credit | |550 |956 |
|29 |123464 |120 | |836 |
|30 |Closing balance | | |836 |

Additional information:
It was found that the details for the cheques received on 30th June 1993 were:

Drawer of the cheque Date on the cheque Amount X York 15th December 1992 $110 Z Rock 15th July 1993 301

You are required to:
a) Update and correct the cash book on 30th June 1993.
b) Draw up a bank reconciliation statement at 30th June 1993.
c) Are there any irregularities to be reported after the reconciliation?
d) What would we do if a cheque drawn by us remained unpresented for over six months?

(a)
|Cash Book (Bank column) |
|Balance b/d | |280 |X. York |(stale cheque) |110 |
|Balance c/d | |131 |Debtors – Z Rock |(postdated cheque) |301 |
| | |411 | | |411 |
| | | | | | | |
| | | | | | | |

|b) Leslie |
|Bank Reconciliation Statement as at 30 June 1993 |
| |$ |$ |
|Balance as per bank statement | |863 |
|Less: Unpresented cheques - 123458 |415 | |
| - 123460 |47 | |
| - 123463 |505 |967 |
| | | |
| | | |
|Corrected bank balance | |(131) O/D |
| | | |

Workings: (reconciliation of beginning balances of cash book and bank statement) The beginning balance of the bank statement $ 150 Add: Adjustment for the bank error 100 Uncredited deposit – last month 196 296 446

Less: Unpresented cheques – last month and still unpresented (415+47) 462 The beginning balance of the cash book (16) O/D

c) i) Deposits of money received on 15 / 16 of June only appeared on the bank statement only on 25 of June. The unreasonable delay of 10 days is not acceptable. ii) The cheque no. 123461 is missing.

d) The stale cheque must be written back in the cash book: Dr. Bank xx Cr. Creditors xx

Exercise Five

Kay Rogan’s Cash Book at 30th November 1982 showed an overdrawn position of £3,630 although her bank statement showed only £2,118 overdrawn. Detailed examination of the two records revealed the following: a) The debit side of the cash book had been undercast by £300. b) A cheque for £1,560 in favour of Z Suppliers Ltd., had been omitted by the bank from its statement, the cheque having been debited to another customer’s account. c) A cheque for £182 drawn in payment of the telephone account had been entered in the cash book as £128 but was shown correctly on the bank statement. d) A cheque for £210 from A. brooks having been paid into the bank was dishonoured and shown as such on the bank statement although no entry relating to the dishonour had been made in the cash book. e) The bank had debited a cheque for £126 to Kay’s account in error; it should have been debited by them to Ray Kogan’s account. f) A dividend of £90 on Kay’s holding of Ordinary Shares has been paid direct to her bank account and no entry made in the cash book. g) Cheques totaling £1260 drawn on 29th November had not been presented for payment h) A lodgement of £1080 on 30th November had not been credited by the bank. i) Interest amounting to £228 had been debited by the bank but not entered in the cash book.

Required: 1. Make any necessary entries in the cash book. 2. Prepare a statement reconciling Kay Rogan’s corrected cash book with her bank statement at 30th November 1982.

1.
|Cash Book |
|1982 | |$ |1982 | |$ |
| |Suspense - undercast |300 | |Balance b/d |3630 |
| |Dividend received |90 | |Telephone |54 |
| |Balance c/d |3732 | |A Brooks- dishonoured cheque |210 |
| | | | |Interest | 228 |
| | |4122 | | |4122 |
| | | | | | |
| | | | | | |
| | | | | | |

2.
|Bank Reconciliation Statement as at 30 September 1993 |
| |$ |$ |
| | | |
|Balance as per bank statement | |(2,118) |
|Add: Error by the bank |126 | |
| Uncredited deposit |1,080 |1,206 |
| | |(912) |
|Add: Cheque omitted - Z Suppliers |1,560 | |
| Unpresented Cheque |1,260 |2,820 |
|Balance per adjusted / corrected cash book | |(3,732) |
| | | |
| | | |

Exercise Six

Hay has received his bank pass sheets for the year to 31st October 1983. At the date, his balance at the bank amounted to £14,130 whereas his own cash book showed a balance of £47,330. His accountant investigated the matter, and discovered the following discrepancies:

a) Bank charges of £60 had not been entered in the cash book. b) Cheques drawn by Hay and totaling £450 had not yet been presented to the bank. c) Hay had not entered receipts of £530 in his cash book. d) The bank had not credited Hay with receipts of £1,970 paid into the bank on 31st October 1983. e) Standing order payments amounting to £1,240 had not been entered in the cash book. f) Hay had entered a payment of £560 in his cash book as £650. g) A cheque received for £300 from a debtor had been returned by the bank marked “refer to drawer”, but this had not been written back in the cash book. h) Hay had brought down his opening cash book balance of £6,585 as a debit balance instead of as a credit balance. i) An old cheque payment amounting to £880 had been written back in the cash book, but the bank had already honoured it. j) Some of Hay’s customers had paid to settle their debts by direct debit. Unfortunately, the bank had credited some direct debits amounting to £16,650 to another customer’s account.

Required: (i) Prepare a statement showing Hay’s adjusted cash book balance as at 31stOctober 1983. ii) Prepare a bank reconciliation statement as at 31st October 1983.
(i)
|Statement adjusting cash book balance as at 31.10.83 |
| |$ |$ |
|Balance per cash book | |47,330 |
|Add: Receipts not entered |530 | |
|Error of original entry in cash book (650-560) | 90 | 620 |
| | |47,950 |
|Less: Standing order payments |1,240 | |
|Bank charges |60 | |
|Dishonoured cheque |300 | |
|Error in balance b/d (6,585 x 2) |13,170 | |
|Old cheque written back being honoured | 880 |15,650 |
|Corrected cash balance | |32,300 |
| | | |
| | | |
| | | |
| | | |
| | | |

(ii)
|Bank Reconciliation statement as at 31.10.83 |
| |$ |$ |
| | | |
|Balance per Bank Statement | |14,130 |
|Add: Uncredited deposit |1,970 | |
|Direct debits posted to another customer |16,650 |18,620 |
| | |32,750 |
|Less: Unpresented cheque | | 450 |
|Balance per cash book (corrected) | |32,300 |
| | | |
| | | |

Exercise Seven
The bank account for the month of September 1983 for the firm of Rivers and Co. was as follows:

|Bank Account |
| |Receipts | | |Payments | | |
|Sept | |£ |Sept. | |Cheque |£ |
| | | | | |no. | |
|1 |Balance b/d |271.94 |3 |Derwent Ltd. |052316 |25.08 |
|1 |T. Hames |53.40 |4 |Severn Bros. |052317 |31.72 |
|1 |Dove Enterprises |62.85 |8 |Clyde and Co. |052318 |121.86 |
|13 |Isis PLC |1793.48 |9 |Ribble Merchants |052319 |1374.29 |
|20 |Colne Electronics |2404.37 |13 |Swale Associates |052320 |10.35 |
| | | |20 |Don Engineering |052321 |642.13 |
| | | |24 |Humber Water Authority |Direct | |
| | | | | |Debit |32.00 |
| | | |26 |Arun Decorators |052322 |90.44 |
| | | |26 |Tyne Borough |Standing | |
| | | | |Council |Order |123.57 |
| | | |27 |Salaries transfers |-- |940.60 |
| | | |28 |Wye and sons Ltd. |052323 |4.30 |
| | | |30 |Balance c/d | |1189.70 |
| | |4586.04 | | | |4586.04 |
|Oct | | | | | | |
|1 |Balance b/d |1189.70 | | | | |

In early October the firm’s bank sent a statement for the month of September 1983, as shown below.

|Statement of account with Mersey Bank Plc |
|Name: Rivers and Co. Current Account Date Issued: 1st October 1983 |
|Sept. |Description |Debit |Credit |Balance |
| | |£ |£ |£ |
|1 |BCE | | |592.45 |
|2 |052315 |85.16 | |507.29 |
|5 |052314 |100.34 | |406.95 |
|8 |052316 |25.08 | |381.87 |
|12 |DD (Medway Insurance) |26.26 | |355.61 |
|13 |CR | |1793.48 |2146.09 |
|13 |052318 |121.86 | |2027.23 |
|15 |052319 |1374.29 | |652.94 |
|16 |052317 |31.72 | |621.22 |
|20 |CR | |2404.37 |3025.59 |
|22 |DD (Humber Water Authority) |32.00 | |2993.59 |
|23 |052320 |10.35 | |2983.24 |
|26 |SO |123.57 | |2859.67 |
|28 |TRFR |940.60 | |1919.07 |
|20 |INT (Loan Account) |11.19 | |1907.88 |
|30 |Bank charges |7.37 | |1900.51 |
|30 |052321 |642.13 | |1258.38 |
|30 |BCE | | |1258.38 |

Abbreviations: BCE = Balance SO = Standing Order CR = Credit TRFR = Transfer. INT = Interest. DD = Direct debit (to Current Account).
Required:
Prepare the firm’s Bank Reconciliation Statement as at 30th September 1983.
(You should make reasonable assumptions in order to explain some items in the question. The answers may vary according to your assumptions.)

|Bank Reconciliation statement as at 30.9.1983 |
| |£ |£ |
|Balance per cash book | |1,189.7 |
|Less: Direct Debit |26.26 | |
|Interest charged |11.19 | |
|Bank charges | 7.37 | |
|Cheques not yet deposited (53.4+62.85) **1 |116.25 | 161.07 |
| | | |
|Corrected cash book balance | |1,028.63 |
| | | |
|Balance per bank statement | |1,258.38 |
|Less: Unpresented cheque ~ 052322 |90.44 | |
| ~ 052323 |4.30 | |
| Unpresented cheques outstanding at 31 Aug 1983 **2 |135.01 |229.75 |
|Balance as per corrected cash book balance | |1,028.63 |
| | | |
|Workings to reconcile the difference between the opening balances: | | |
| | | |
|Balance per bank statement as at 1983 | |592.45 |
|Less: Unpresented cheques as at 31 Aug 1983: 052314 |100.34 | |
|Unpresented cheques as at 31 Aug 1983: 052315 |85.16 |185.5 |
| | |406.95 |
|Balance per cash book as at 1983 | |271.94 |
|Missing Balance **2 | |135.01 |
| | | |
|**1 : Assuming that the cheques were accidentally left behind in the drawer or being stolen after| | |
|debiting the cash book. | | |
| | | |
|**2 : Assuming the missing balance represented the unpresented cheques as at 31 Aug 1983 which | | |
|were still not presented as at 30 Sept. 1983 | | |
| | | |
| | | |
| | | |

Exercise Eight

From the information given below relating to PWW Limited you are required to: a) Make such additional entries in the cash at bank account of PWW Limited as you consider necessary to show the correct balance at 31st October 1982. b) Prepare a statement reconciling the correct balance in the cash at bank account as shown in (a) above with balance at 31st October 1982 that is shown on the bank statement from Z Bank Limited.

|Cash at bank account in the ledger of PWW Limited |
|October | |$ | |October | |$ |
|1 |Balance b/f |274 | |1 |Wages |3146 |
|8 |Q Manufacturing |3443 | |1 |Petty Cash |55 |
|8 |R Cement |1146 | |8 |Wages |3106 |
|11 |S Limited |638 | |8 |Petty Cash |39 |
|11 |T & sons |512 | |15 |Wages |3029 |
|11 |U & Co |4174 | |15 |Petty Cash |78 |
|15 |V Limited |1426 | |22 |A & Sons |929 |
|15 |W Electrical |887 | |22 |B Limited |134 |
|22 |X and Associates |1202 | |22 |C & Company |77 |
|26 |Y Limited |2875 | |22 |D & E |263 |
|26 |Z Limited |982 | |22 |F Limited |1782 |
|29 |ABC Limited |1003 | |22 |G Associates |230 |
|29 |DEE Corporation |722 | |22 |Wages |3217 |
|29 |GHI Limited |2461 | |22 |Petty Cash |91 |
|31 |Balance c/f |14 | |25 |H & Partner |26 |
| | | | |26 |J Sons & Co. Ltd |868 |
| | | | |26 |K & Co |107 |
| | | | |26 |L, M & N |666 |
| | | | |28 |O Limited |112 |
| | | | |29 |Wages |3191 |
| | | | |29 |Petty Cash |52 |
| | | | |29 |P & Sons | 561 |
| | |21759 | | | |21759 |

|Z Bank Limited |
|Statement of Account with PWW Limited |
|October | |Payment |Receipts | |Balance |
|1 | | | | |1135 |
|1 |937407 |55 | | | |
|1 |937406 |3146 | | | |
|1 |937372 |421 | |O/D |2487 |
|2 |937384 |73 | | | |
|2 |937379 |155 | |O/D |2715 |
|6 |937391 |212 | |O/D |2927 |
|8 |Sundry credit | |4589 | | |
|8 |937408 |3106 | | | |
|8 |937409 |39 | |O/D |1483 |
|11 |Sundry credit | |5324 | |3841 |
|15 |Sundry credit | |2313 | | |
|15 |937411 |78 | | | |
|15 |937410 |3029 | | |3047 |
|22 |Sundry credit | |1202 | | |
|22 |937418 |3217 | | | |
|22 |937419 |91 | | |941 |
|25 |937416 |1782 | | | |
|25 |937413 |134 | |O/D |975 |
|26 |937412 |929 | | | |
|26 |Sundry credit | |3857 | | |
|26 |937417 |230 | | |1723 |
|27 |937415 |263 | | | |
|27 |937414 |77 | | |1383 |
|29 |Sundry credit | |4186 | | |
|29 |937426 |52 | | | |
|29 |937425 |3191 | | | |
|29 |937420 |26 | | | |
|29 |Dividends on investments | |2728 | | |
|29 |937423 |666 | | |4362 |
|31 |Charges |936 | | |3426 |

|Cash Book |
|1982 | |$ |1982 | |$ |
|31/10 |Dividends on investment |2,728 |31/10 |Balance b/d |14 |
| | | | |Charges |936 |
| | | | |Balance c/d |1,778 |
| | |2,728 | | |2,728 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |

|Bank Reconciliation statement as at 31.10.1982 |
| |$ |$ |
|Balance per bank statement | |3,426 |
|Less: Unpresented cheques: J sons & co Ltd. |868 | |
|K & Co |107 | |
|O Ltd |112 | |
|P & Sons |561 |1,648 |
|Balance per cash book (corrected) | |1,778 |
| | | |
|Workings to reconcile the difference in the opening balances: | | |
|Balance as per bank statement as at Oct 1 | |1,135 |
|Less: Unpresented Cheque | | |
| ~ 937372 |421 | |
| ~ 937384 |73 | |
| ~ 937379 |155 | |
| ~ 937391 |212 | 861 |
|Balance as per cash book as at Oct 1 | |274 |
| | | |

Exercise Nine

On 3 February 1983, Mr. J. Sheffield received the following monthly current account bank statement for January 1983 from his bank. Mr. Sheffield liked to keep a full record of all his personal transactions including cash purchases by completing a note book of all monies received and paid. The following is an extract of his note book for the month of January 1983. The balance on 1st January 1983 included his personal cash which amounted to £26.30 (twenty six pounds thirty pence) as well as his current bank account balance. The cash drawn from the bank for own use was used immediately for personal expenditure.

|ILOMAN BANK LIMITED |
|Bank Statement Current Account January 1983 |
|Account: Mr. J. Sheffield a/c number 16508324 |
|Date |Particulars |Payments |Receipts |Balance |
|1983 | |£ |£ |£ |
|1 Jan |Balance | | |246.00 |
|2 |Cheque 5923 |26.00 | |220.00 |
|5 |Cash | 55.00 | |165.00 |
|8 |Standing Order | 52.00 | |113.00 |
|9 |Cheque 21804 | 36.18 | | 76.82 |
|10 |K. Roberts cheque receipt | | 56.26 |133.08 |
|12 |cheque 21805 | 72.40 | | 60.68 |
|14 |Dishonoured cheque | 56.26 | | 4.42 |
|16 |Cheque 21807 | 46.27 | |O/D 41.85 |
|20 |Standing Order | 26.00 | |O/D 67.85 |
|24 |Cash | |100.00 | 32.15 |
|26 |Salary | |563.00 |595.15 |
|27 |Charges | 16.82 | |578.33 |
|28 |Transfer |250.00 | |328.33 |
|28 |Salary Mrs. Sheffield | |235.00 |563.33 |
|30 |Interest | 0.62 | |562.71 |

Note Book (containing cash and current account transactions).
|Date |Particulars | |Balance |
|1983 | |£ |£ |
|1 Jan |Balance brought forward | |272.30 |
|4 |Cash for own use from bank | 55.00 |217.30 |
|5 |Telephone cheque 21804 | 36.18 |181.12 |
|6 |Car repair cheque 21805 | 72.40 |108.72 |
|7 |Cheque from K. Roberts | 56.26 |164.98 |
|8 |Deposit for holiday cheque 21806 |100.00 | 64.98 |
|11 |Standing order – mortgage | 52.00 | 12.98 |
|12 |Cash from M. Short |131.62 |144.60 |
|13 |Cash in hand spent on housekeeping | 55.00 | 89.60 |
|18 |New tyres cheque 21807 | 46.27 | 43.33 |
|19 |Electricity cheque 21808 | 62.34 |O/D 19.01 |
|20 |Standing Order | 26.00 |O/D 45.01 |
|21 |Cash to bank current a/c |100.00 |-- |
|22 |Cheque from K. Knowall | 64.80 | 19.79 |
|26 |Salary cheque received |563.00 |582.79 |
|28 |Transfer to deposit a/c |250.00 |332.79 |
|28 |Wife salary cheque to deposit a/c |235.00 |-- |
|31 |Balance carried forward | |332.79 |

Required: a) A bank reconciliation statement for the month of January 1983. b) Suggest to Mr. J. Sheffield how he can make the work of reconciliation easier. What items would you query with the bank, if any and why?
(a)
|Bank Reconciliation statement as at 31.1.83 |
| |£ |£ |
|Balance as per bank and personal cash | |332.79 |
|Add: Cash spent on housekeeping |55.00 | |
| Cash Banked |100.00 |155.00 |
| | |487.79 |
|Less: Opening balance of personal cash |26.30 | |
| Cash from M short |131.62 |157.92 |
|Balance as per bank only (not including cash) | |329.87 |
|Less: Dishonoured cheque |56.26 | |
| Charges |16.82 | |
| Interest | 0.62 | 73.70 |
|Corrected bank balance | |256.17 |
| | | |
|Balance as per bank statement | |562.71 |
|Add: Uncredited deposit: K knowall |64.80 | |
| Error made by the bank (cheque 5923) |26.00 | 90.80 |
| | |653.51 |
|Less: Unpresented cheque: 21806 |100.00 | |
| 21808 | 62.34 | |
| Mrs. Sheffield’s salary cheque wrongly entered |235.00 |397.34 |
|Corrected bank balance | |256.17 |
| | | |
| | | |
| | | |

b) Suggestions to make the reconciliation easier: 1) Distinguish the receipts or payments of cash in hand and cash at bank. e.g. separate the note book into cash column and bank column. 2) Avoid recording irrelevant information in the note book such as the transactions for the deposit account. We should query with the bank for two items: 1) Who was the drawer of the cheque no. 5923? Most probably, it was not drawn by us. 2) Why was Mrs. Sheffield’s salary cheque entered in the current a/c instead of deposit a/c?

Similar Documents

Free Essay

Turn of the Screw

...home after the previous governess died. Douglas begins to read from the written record, and the story shifts to the governess’s point of view as she narrates her strange experience. The governess begins her story with her first day at Bly, the country home, where she meets Flora and a maid named Mrs. Grose. The governess is nervous but feels relieved by Flora’s beauty and charm. The next day she receives a letter from her employer, which contains a letter from Miles’s headmaster saying that Miles cannot return to school. The letter does not specify what Miles has done to deserve expulsion, and, alarmed, the governess questions Mrs. Grose about it. Mrs. Grose admits that Miles has on occasion been bad, but only in the ways boys ought to be. The governess is reassured as she drives to meet Miles. One evening, as the governess strolls around the grounds, she sees a strange man in a tower of the house and exchanges an intense stare with him. She says nothing to Mrs. Grose. Later, she catches the same man glaring into the dining-room window, and she rushes outside to investigate. The man is gone, and the governess looks into the window from outside. Her image in the window frightens Mrs. Grose, who has just walked into the room....

Words: 1066 - Pages: 5

Free Essay

The Star

...character? To what extent is her final protest justified? How do the other characters portray themselves by their attitudes toward the ritual? Mrs. Tess Hutchinson stands out right from the start: she arrives at the lottery late. She explains to Mr. Summers that she was doing her dishes and forgot what day it was. The town treats her lateness lightly, but several people comment on it, “in voices just loud enough to be heard across the crowd, ‘Here comes your Missus, Hutchinson,’ and ‘ Bill, she made it after all.’” (Jackson 501). It is ironic that she is the one who wins the lottery, and is fated to be stoned. So Tess Hutchinson has already been noticed by people as one who is not entirely part of the group. Before the drawing she is friendly with the other women, pretending to be pleased to be present. The very moment that she sees is her family that draws the black dot, though, her egotism is evident. “You didn’t give him time enough to take any paper he wanted. I saw you. It wasn’t fair!” (Jackson 504). She continues to scream about the unfairness of the ritual up until her stoning. Mrs. Hutchinson knew the lottery was wrong, but she never did anything about it. She pretends as much as she could to enjoy it, when she truly hated it all along. Maybe Jackson is suggesting that the more hypocritical one is, the more of a target they are. Mrs. Hutchinson was clearly the target of her fears. I think sometimes we have no problem remarking on people’s adultery until it is ourselves that...

Words: 548 - Pages: 3

Premium Essay

Search for Miss Ssg (Script)

...members and the spirited PTA Officers. J & M: ladies and gentlemen, good evening! Welcome to the search for MISS SSG 2011-2012 and the induction ceremony of Tugdan National High School. M: as we commence this momentous event, may I request everybody to rise for a soul warming doxology to be lead by selected students. J: please remain standing for the Philippine National Anthem to be conducted by Mrs. Rachel Fesalbon. M: the world is proud of having its great leaders. From ancient times up to present, good leaders foster the rest of the world to stand firm, to dream big and to take the highest flight man could ever take.. good leaders prepare people to survive the realities of life !ladies and gentlemen, let us hear from our loving Madam Melicia Galicia for her opening remarks. : and at this moment, may I call on Mr. Christian Solidum to introduce the board of judges for tonight’s affair. J: thank you sir! And now let us all welcome our candidates in their production number. J: now, we have the induction ceremony of the newly elected SSG Officers who will be presented by Mr. Randy A. Musa, SSG Adviser and to be inducted by Hon. Herman Galicia, ABC President.. may I request all the officers to come on stage. M: folks, let us be entertained as the selected students set on stage in their modern dance presentation. : thank you guys!! J: ladies and gentlemen, a big round of applause to the candidates in their fashionista...

Words: 790 - Pages: 4

Free Essay

Mr Ahmed

...May I beg that you will write at once to the mother of this unfortunate woman--to Mrs. Catherick--to ask for her testimony in support of the explanation which I have just offered to you?" I saw Miss Halcombe change colour, and look a little uneasy. Sir Percival's suggestion, politely as it was expressed, appeared to her, as it appeared to me, to point very delicately at the hesitation which her manner had betrayed a moment or two since. I hope, Sir Percival, you don't do me the injustice to suppose that I distrust you," she said quickly. "Certainly not, Miss Halcombe. I make my proposal purely as an act of attention to YOU. Will you excuse my obstinacy if I still venture to press it?" He walked to the writing-table as he spoke, drew a chair to it, and opened the paper case. "Let me beg you to write the note," he said, "as a favour to ME. It need not occupy you more than a few minutes. You have only to ask Mrs. Catherick two questions. First, if her daughter was placed in the Asylum with her knowledge and approval. Secondly, if the share I took in the matter was such as to merit the expression of her gratitude towards myself? Mr. Gilmore's mind is at ease on this unpleasant subject, and your mind is at ease—pray set my mind at ease also by writing the note." "You oblige me to grant your request, Sir Percival, when I would much rather refuse it." With those words Miss Halcombe rose from her place and went to the writing-table. Sir Percival thanked her, handed her a...

Words: 572 - Pages: 3

Premium Essay

The Virgin

...He went to where Miss Mijares sat, a tall, big man, walking with an economy of movement, graceful and light, a man who knew his body and used it well. He sat in the low chair worn decrepit by countless other interviewers and laid all ten fingerprints carefully on the edge of her desk. She pushed a sheet towards him, rolling a pencil along with it. While he read the question and wrote down his answers, she glanced at her watch and saw that it was ten. "I shall be coming back quickly," she said, speaking distinctly in the dialect (you were never sure about these people on their first visit, if they could speak English, or even write at all, the poor were always proud and to use the dialect with them was an act of charity), "you will wait for me." As she walked to the cafeteria, Miss Mijares thought how she could easily have said, Please wait for me, or will you wait for me? But years of working for the placement section had dulled the edges of her instinct for courtesy. She spoke now peremtorily, with an abruptness she knew annoyed the people about her. When she talked with the jobless across her desk, asking them the damning questions that completed their humiliation, watching pale tongues run over dry lips, dirt crusted handkerchiefs flutter in trembling hands, she was filled with an impatience she could not understand. Sign here, she had said thousands of times, pushing the familiar form across, her finger held to a line, feeling the impatience grow at sight of the man...

Words: 2581 - Pages: 11

Free Essay

Ssadas

...Contact Information for Teaching Staff at Thomas Knyvett College If you email a member of staff please allow 48 hours for a response. If it is an urgent matter please contact a member of the SLT or your son/daughter’s House Leader. Senior Leadership Team Mrs Miss Mr Mr Mr Miss Mrs Mrs Mrs Miss Miss Mr Mrs Mrs Ms Mr Mrs Mrs Mrs Miss Miss Miss Miss Mrs Mr Miss Mrs Miss Miss Mr Ms Ms Mrs Mrs Miss Mrs Mrs Miss Mr Mrs Mr Mrs Mrs Miss Miss Miss Ms Miss Miss Miss Mrs Janise Farrah Andrew Sheldon Chris Freya Claire Valerie Inma Seema Allison Adam Sian Kapila Theresa David Aimi Correen Jackie Emma Tanya Joann Alison Rachel Nick Abigail Wendy Lauren Isobel Andy Megan Mazie Carolyn Priscilla Preetpal Gurinder Sian Emily Steven Christine David Susan Vanessa Hayley Jean Azmari Linda Laura Nicole Hayley Tanya Marillat Thantrey Ward Snashall Bellamy Oliver Parsons O’Keeffe Alvarez Balrai Bates Belbin Bolsh Chalisgaonkar Chambers Chapman Curtis Danks Dillaway Edge Ellis Epps Fairclough Foley Fowler Frith Grantham Jankowski John Knott Lister Lloyd-Smith Manwaring Naicker Nashad Oberai Reeve Razzell Ratsakatika Reilly Retsinas Rowntree Russell Sculpher Semadeni Shikder Strachan Thomas Vernon Warren Zaheer JMa FTh AWa SSn CBe FOL CPa VOk IAL SBa ABa ABe SBo KCh TCh DCh ACs CDa JDi EEd TEl JEp AFa RFo NFo AFr WGr LJa IJo AKn MLi MSm CMa PNa PNd GOi SRv ERa DRa CRe SRe SRe VRu HSc JSe ASh LSt LTh NVe HWa TZa Head of School Deputy Head Assistant Head Assistant Head Cross Phase Assistant Head Partnership...

Words: 591 - Pages: 3

Premium Essay

Missed Appt

...Article 86 of the Uniform Code Of Military Justice. This Article covers Point and Place of Duty. That means from PT formation to COB that is where you will be. What a lot of Soldiers do not understand that includes appointments made by them or someone else. We have appointment times, SP times, formation times and many other start times that dictate we will be there. If a Convoy has an SP time of fifteen hundred hours and the Soldiers decide to show up late because they did not feel like getting ready on time people could die. If they rolled out on time, they may have avoided the ambush or avoided the Vbid that hit them in the bottleneck. It sounds extreme but time management plays a critical role in the Army. When you make an appointment that spot has been reserved for you. That means if you have been given the last slot someone else is going to have to wait for another one to open up. This could be one day or one month. And because you missed it someone else is still going to have to wait when they could have had that spot and been there. If you are going to miss the appointment or cannot make it due to mission they do allow us to cancel the appointment with in twenty four hours. The Army allows us to make appointments for whatever we need. Be it for a medical appointment, house goods, CIF, Smoking Sensation or whatever we need these recourses are available to us. But when Soldiers start missing appointments theses systems start to become inefficient. What a lot of Soldiers do...

Words: 354 - Pages: 2

Free Essay

The Virgin

...THE VIRGIN by Kerima Polotan Tuvera 1) He went to where Miss Mijares sat, a tall, big man, walking with an economy of movement, graceful and light, a man who knew his body and used it well. He sat in the low chair worn decrepit by countless other interviewers and laid all ten fingerprints carefully on the edge of her desk. She pushed a sheet towards him, rolling a pencil along with it. While he read the question and wrote down his answers, she glanced at her watch and saw that it was ten. "I shall be coming back quickly," she said, speaking distinctly in the dialect (you were never sure about these people on their first visit, if they could speak English, or even write at all, the poor were always proud and to use the dialect with them was an act of charity), "you will wait for me." As she walked to the cafeteria, Miss Mijares thought how she could easily have said, Please wait for me, or will you wait for me? But years of working for the placement section had dulled the edges of her instinct for courtesy. She spoke now peremtorily, with an abruptness she knew annoyed the people about her. When she talked with the jobless across her desk, asking them the damning questions that completed their humiliation, watching pale tongues run over dry lips, dirt crusted handkerchiefs flutter in trembling hands, she was filled with an impatience she could not understand. Sign here, she had said thousands of times, pushing the familiar form across, her finger held to a line, feeling...

Words: 2588 - Pages: 11

Free Essay

Angelina Jolie

...was a member of the “Kissy girls”, whose job was to hunt boys down and kiss them till they screamed. Another hobby was to collect snakes and lizards. She even had a favourite lizard, called Vladimir. Later she was a student at Beverly Hills High School far from being beautiful. She wore braces, glasses and was painfully skinny. So the students teased her but they didn’t know that she had an impressive collection of knives. Her movie career At the age of seven she appeared in her first movie but her breakthrough came with Girl, Interrupted. It followed her big hit: her role in Tomb Raider, where she had to master a British accent. She had to become familiar with kick-boxing, street-fighting, yoga and ballet. In 2005 she released Mr. and Mrs. Smith, where she and Brad Pitt starred as a bored couple. Now she is married with Brad Pitt and although she is committed to motherhood she does charitable work...

Words: 269 - Pages: 2

Premium Essay

Angelina Jolie

...When most people see the name Angelina Jolie they only think of the talented actress, the significant other of Brad Pitt or the celebrity with the very diverse children but she is so much more than that. Since 2001 Jolie has been working alongside the United Nations High Commissioner for Refugees to bring awareness to the unfortunate situations of refugees from around the world. She has traveled to and volunteered in many third world countries such as; Sierra Leone, Cambodia, Costa Rica, Iraq and North Caucasus. In addition to this, she along with Brad Pitt founded the Jolie-Pitt foundation which is dedicated to eradicating extreme rural poverty, protecting natural resources and conserving wildlife. This foundation also donates to many other humanitarian groups, one being Doctors without Borders. In 2009 Angelina Jolie gave the opening speech for a World Refugee Day event being held at the National Geographic Society headquarters in Washington D.C. Throughout this speech Jolie concentrates not on the horrible conditions that refugees endure but on the spirit that they have from being in these situations. When speaking to millions of Americans she doesn’t rely on facts or statistics but instead she uses anecdotal evidence, visualization and pathos to get her point across. The purpose of this speech is not to persuade but to inform the people of America about the amazing people she has met while traveling to third world countries. Furthermore, she is trying to show people that...

Words: 268 - Pages: 2

Premium Essay

Pearls Paper

...When most people see the name Angelina Jolie they only think of the talented actress, the significant other of Brad Pitt or the celebrity with the very diverse children but she is so much more than that. Since 2001 Jolie has been working alongside the United Nations High Commissioner for Refugees to bring awareness to the unfortunate situations of refugees from around the world. She has traveled to and volunteered in many third world countries such as; Sierra Leone, Cambodia, Costa Rica, Iraq and North Caucasus. In addition to this, she along with Brad Pitt founded the Jolie-Pitt foundation which is dedicated to eradicating extreme rural poverty, protecting natural resources and conserving wildlife. This foundation also donates to many other humanitarian groups, one being Doctors without Borders. In 2009 Angelina Jolie gave the opening speech for a World Refugee Day event being held at the National Geographic Society headquarters in Washington D.C. Throughout this speech Jolie concentrates not on the horrible conditions that refugees endure but on the spirit that they have from being in these situations. When speaking to millions of Americans she doesn’t rely on facts or statistics but instead she uses anecdotal evidence, visualization and pathos to get her point across. The purpose of this speech is not to persuade but to inform the people of America about the amazing people she has met while traveling to third world countries. Furthermore, she is trying to show people that...

Words: 317 - Pages: 2

Premium Essay

Mrs Fields Case Study

...Mrs. Fields’ Cookies Case Study Assignment 1. Would you describe Mrs. Fields’ Cookies as more of a functional hierarchy structured along traditional functional lines or more of an IT-enabled network consisting of tailored business processes? I would describe the organizational structure of Mrs. Fields’ Cookies as being an IT-enabled network consisting of tailored business processes. Throughout the different sections of the case study, several examples support the notion that Mrs. Fields’ organizational structure aligns with the descriptions and characteristics of a networked structure. The importance that the organization places on Information Strategy and the innovative control processes in place also support this claim. In order to prove this, I’ll start by discussing the basic descriptions and characteristics of a networked organizational structure. Then, I’ll demonstrate through examples how Mrs. Fields’ is a proper fit to these descriptions and characteristics. Pearlson and Saunders describe a networked organizational structure as formal and informal communication networks that connect all parts of the company, as opposed to the bureaucratic form with defined levels of management in a hierarchal structure. Randy and Debbi Fields did not like the idea of a hierarchy because they believed it leads to a focus on managing people instead of business processes. At Mrs. Fields’ Cookies, there was no official organizational chart. Although there were job titles and responsibilities...

Words: 2160 - Pages: 9

Free Essay

Mrs. Fields

...Overview Mrs. Fields Cookies was founded by Debbi Fields in the late 1970s. She and her husband Randy Fields opened their first store in 1977 in Palo Alto, California, selling homemade-style cookies which quickly grew in popularity. Products Mrs. Fields Cookies came in 14 varieties. All baked products were made on premises in the individual stores and the company especially focused on the fresh cookies. If the cookies are not sold within two hours, they were given away and discarded. Competitors Mrs. Fields competitors included New York’s David’s Cookies, Atlanta’s Original Great American Chocolate Chip Cookie Company, and the Nestle Company’s Original Cookie Co. Challenges 1. Low barriers to entry and mall locations competition In the early 1980s, cookies were cheap to make and the barriers of sweet snack industry to entry were low. There were many cookies producers and many consumers in the market, and no business had total control over the market price. Because some 80% of Mrs. Fields outlets were in shopping malls, so the competition for the most favorable mall locations was fierce. 2. Franchising Financing and performance of exchange market Mrs. Fields had consistently refused to franchise their stores, because “she viewed franchising as a loss of control over the end product and loss of touch with the customers”. To find bank financing and additional capital for expansion, Mrs. Fields tried to go public and made initial public offering on the London exchange...

Words: 772 - Pages: 4

Premium Essay

A Gabe of Sky

...A Gap of Sky A) In the short story “A Gap of Sky” we follow a young woman on her quest for the essence of life. Throughout the story, which stretches across an afternoon, she digs deeper into herself, through sleepiness, drugs, university and a general indifference towards life, until she sees herself, on a grey afternoon in the centre of London, “filled with something fizzing and alive and beautiful”. Ellie wakes up around 4 pm after a rough night with alcohol and various drugs that ended on a rooftop somewhere in London. She remembers that she felt happy that early morning, affected by the drugs and the surreal surroundings, but as she wakes up in her wretched little apartment, the joy of last night seems far away. She needs to hand in an essay on Virginia Wolf the next morning, so she rushes of to get some printer ink, cigarettes and possibly also some more coke. Ellie seems tired, worn out from last night and you understand that she has a hard time getting out of bed. You might get the impression that her life is a bit shallow, for instance when she tells that last night she was surrounded by people who laughed and had a good time, but now she is alone, coping with the harsh realities of a Monday morning. She seems tough, or wanting to seem tough, but she changes towards the end of the short story to a more real toughness of calm confidence. The core of Ellie's life isn't exactly to fulfil society's or her parent's wishes for a bright young woman. She has already had...

Words: 875 - Pages: 4

Free Essay

Mr Arnolds Bio

...and bodybuilding, going on to compete in several minor contests in Europe. However, it was when he emigrated to the United States in 1968 at the tender age of 21 that his star began to rise. Up until the early 1970's, bodybuilding had been viewed as a rather oddball sport, or even a mis-understood "freak show" by the general public, however two entrepreneurial Canadian brothers Ben Weider and Joe Weider set about broadening the appeal of "pumping iron" and getting the sport respect, and what better poster boy could they have to lead the charge, then the incredible "Austrian Oak", Arnold Schwarzenegger. Over roughly the next decade, beginning in 1970, Schwarzenegger dominated the sport of competitive bodybuilding winning five Mr. Universe titles and seven Mr. Olympia titles and, with it, he made himself a major sports icon, he generated a new international audience for bodybuilding, gym memberships worldwide swelled by the tens of thousands and the Weider sports business empire flourished beyond belief and reached out to all corners of the globe. However, Schwarzenegger's horizons were bigger than just the landscape of bodybuilding and he debuted on screen as "Arnold Strong" in the low budget Hercules in New York (1969),...

Words: 441 - Pages: 2