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Bank Reconciliation Statement Set out below are the Bank Account and Bank Statement of Julia Lyons for the month of March 2015 - Leaving Cert Accounting - Question 3 - 2015
Question 3
Bank Reconciliation Statement Set out below are the Bank Account and Bank Statement of Julia Lyons for the month of March 2015. --- Dr Bank Account € € Mar... show full transcript
Worked Solution & Example Answer:Bank Reconciliation Statement Set out below are the Bank Account and Bank Statement of Julia Lyons for the month of March 2015 - Leaving Cert Accounting - Question 3 - 2015
Step 1
Prepare a statement on 31/03/2015 reconciling the adjusted Bank Account balance with the Bank Statement balance.
Answer
Bank Reconciliation Statement
To reconcile the adjusted cash book balance with the Bank Statement balance, we will present the following:
-
Adjusted Cash Book Balance: 33,505€
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Add: Cheques drawn but not cashed:
- 0017 T. Mulvey: 1,800€
- 0020 Wages: 1,400€
Total Additions: 3,200€. Therefore, new subtotal: 36,705€.
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Less: Lodgement not yet credited:
- Sales: 9,450€
New subtotal after deduction: 27,255€.
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Less: Bank Error:
- This refers to the erroneous entry of M. Nolan’s dishonoured cheque which results in the final balance of 27,095€.
Final Reconciliation Statement
| Description | Amount (€) |
|---|---|
| Adjusted Cash Book Balance | 33,505 |
| Add: Cheques drawn not yet cashed | 3,200 |
| Less: Lodgement not yet credited | 9,450 |
| Less: Bank Error | 160 |
| Balance per Bank Statement | 27,095 |