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Bank Reconciliation Statement Set out below are the Bank Account and Bank Statement of T - Leaving Cert Accounting - Question 3 - 2008
Question 3
Bank Reconciliation Statement Set out below are the Bank Account and Bank Statement of T. Clarke for the month of April 2008: Bank Account April 1 Balance b/d € 8,... show full transcript
Worked Solution & Example Answer:Bank Reconciliation Statement Set out below are the Bank Account and Bank Statement of T - Leaving Cert Accounting - Question 3 - 2008
Step 1
Show T. Clarke's adjusted Bank Account and bring down the adjusted balance.
Answer
To compute T. Clarke's adjusted Bank Account, we start with the initial balance and adjust it based on the transactions that affected the balance:
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Starting Balance:
- Balance b/d: €8,760
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Add Interest Received:
- Interest received: €200
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Subtract Dishonoured Cheque:
- Dishonoured cheque from M. Feeney: €730
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Subtract Standing Order:
- Standing Order: €160
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Subtract Bank Charges:
- Bank Charges: €33
Summary of Adjustments:
egin{align*}
ext{Adjusted Balance} &= ext{Starting Balance} + ext{Interest} - ext{Dishonoured Cheque} - ext{Standing Order} - ext{Bank Charges} \
&= €8,760 + €200 - €730 - €160 - €33 \
&= €8,760 + €200 - €923 \
&= €16,275
ext{Adjusted Balance b/d} &= €15,352
ext{Final Adjusted Balance} = €15,352
Step 2
Prepare a statement on 30/4/2008 reconciling the adjusted Bank Account balance with the Bank Statement balance.
Answer
To reconcile T. Clarke's adjusted Bank Account balance with the Bank Statement balance, follow these steps:
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Balance as per Bank Statement:
- Balance: €14,467
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Add Unrecorded Lodgements:
- Unrecorded Lodgements: €1,960
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Error Adjustment:
- Error in M. Clarke's account to be added back: €500
-
Less: Cheques Drawn Not Yet Presented:
- Cheque No 300104: €275
- Cheque No 300106: €1,300
Reconciliation Summary:
egin{align*} ext{Balance as per Bank Statement} & : €14,467 \
- ext{Unrecorded Lodgements} & : €1,960 \
- ext{Error in M. Clarke's account} & : €500 \
- ext{Cheques drawn not yet presented (300104)} & : €275 \
- ext{Cheques drawn not yet presented (300106)} & : €1,300 \ &= €16,927 \ ext{Balance as per Adjusted Bank Account} & : €15,352 ext{Final balance check: } & = €15,352 ext{Reconciliation confirms balance: } & = €16,927