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Bank Reconciliation Statement Set out below are the Bank Account and Bank Statement of Louise White for the month of April 2006 - Leaving Cert Accounting - Question 4 - 2006
Question 4
Bank Reconciliation Statement Set out below are the Bank Account and Bank Statement of Louise White for the month of April 2006. Bank Account € April 1 Balanc... show full transcript
Worked Solution & Example Answer:Bank Reconciliation Statement Set out below are the Bank Account and Bank Statement of Louise White for the month of April 2006 - Leaving Cert Accounting - Question 4 - 2006
Step 1
Show Louise White’s adjusted Bank Account and to bring down the adjusted balance.
Answer
To adjust Louise White’s Bank Account, we need to account for the errors and transactions that affect her balance.
Adjusted Bank Account:
| € |
|---|
| Balance b/d |
| Interest Received |
| Less: Dishonoured Cheque (T. Black) |
| Less: Bank Charges |
| Less: Standing Order |
| Balance c/d |
Thus, the adjusted balance brought down is €6,625.
Final Adjusted Balance:
| Balance c/d | €6,625 |
Step 2
Prepare a statement on 30/04/2006 reconciling the adjusted Bank Account balance with the Bank Statement balance.
Answer
To reconcile the adjusted Bank Account balance with the Bank Statement balance, we will start with the balance as per the Bank Statement and adjust it for any discrepancies.
Bank Reconciliation Statement:
| € |
|---|
| Balance as per Bank Statement |
| Add: Unrecorded Lodgements |
| Error (M. Mooney) |
| Less: Cheques not presented |
| 200101 – M. Ryan |
| 200102 – T. Benson |
| 200103 – Rates |
| Balance as per adjusted Bank account |
Thus, the balances reconcile, confirming accuracy.