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Set out below are the Bank Account and Bank Statement of Anne Madden for the month of March 2022 - Leaving Cert Accounting - Question 3 - 2022
Question 3
Set out below are the Bank Account and Bank Statement of Anne Madden for the month of March 2022. Dr Bank Account € Mar. 1 Balance b/d € 3,160 Mar. 8 Sa... show full transcript
Worked Solution & Example Answer:Set out below are the Bank Account and Bank Statement of Anne Madden for the month of March 2022 - Leaving Cert Accounting - Question 3 - 2022
Step 1
Prepare a statement on 31/03/2022 reconciling the adjusted Bank Account balance with the Bank Statement balance.
Answer
To reconcile the adjusted Bank Account balance of €5,560 with the Bank Statement balance, we start with the adjusted balance and account for any outstanding items.
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Adjusted Bank Account Balance: €5,560
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Add: Cheques drawn not yet cashed:
- K. Fahey: €1,745
- J. Foley: €540
- Total: €2,285
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Less: Lodgement not yet credited:
- Sales: €5,480
- Total not yet credited: €5,480
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Less: Bank Error: €320
Thus, the statement looks like this:
| Description | Amount (€) |
|---|---|
| Adjusted Bank Account Balance | 5,560 |
| Add: Cheques drawn not yet cashed | 2,285 |
| Less: Lodgement not yet credited | -5,480 |
| Less: Bank Error | -320 |
| Balance as per Bank Statement | 2,180 |