FINANCIAL ACC 101

BANK RECONCILIATION STATEMENT CONTD

Hey Everyone, Happy New Wednesday. Hope your week is going well, i hope you all are having fun???. This week shall be a week of Good news for all of you in Jesus Name- Amen. Am working on something New and Exciting and when am done y'all will know. LOLZ. I pray that God's will for your Lives come true and that you are not disappointed when you learn of it. I know that sometimes things might not turn out the way you have planned, but at the end you will be able to testify by yourself that God has been good to you. Well am not a Preacher oooo. LMAO but i just felt the need to say a few words of encouragement to any of you that might be going through something rough right now. I know cos i have been there and it's not easy but be STRONG!!!.

ILLUSTRATION OF METHOD B:

On 30th November 1993, Olukunmi and Sons Cash book showed a debit balance of N3, 500 whereas the Bank Statement showed a Balance of N2, 325. On Investigation the following items were discovered to have caused the discrepancy.

a. The Bank had made Charges of N310 which had not been entered in the Cash book.

b. A Cheque received for N2, 000 entered in the cash book had not been entered by the Bank until December 3rd 1993.

c. A Standing Order for subscription of N150 had been entered in the Bank Statement as paid

but not in the cash book.

d. The following Cheques were drawn but not yet presented for payment in the Bank: Cheques for N300, N600, N250.

e. A Cheque drawn for N50 had been entered as N60.

f. A Cheque for N35 previously received and paid into the Bank had been returned by the Bank.

g. A Customer paid N160 directly into their account in the Bank. It had not been entered in the Cash book.

You are Required:

i. Adjusted Cash Book

ii. Bank Reconciliation Statement as at 30th Nov. 1993.

SOLUTION:

DR                                    Adjusted Cash Book                            CR
Nov Balance b/f                  N3, 500	Nov  Bank Charges                  N310
Payment Overcast        N10	Dishonoured Cheque     N35
Credit Transfer            N160	Standing Order             N150
	Balance c/d              N3, 175
N3, 670	N3, 670
	Note: Payment Overcast is arrived at by deducting N50 from N60.

Bank Reconciliation Statement as at 31st Nov 1993
	N	N
Balance as per Adjusted Cash book		3, 175
Add: Unpresented Cheque	300
	600
	250	1, 150
		4, 325
Less: Uncredited Cheque		2, 000
Balance as per Bank Statement		2, 325

NOTE: PARTS OF THIS POST WERE CULLED FROM TONAD ESSENTIAL FINANCIAL ACCOUNTING FOR SENIOR SECONDARY SCHOOLS BY O.A LONGE & R.A KAZEEM.  WE AT EDU-MADE-EASY RESPECT THIS CRAFT TOO MUCH TO DENY ITS ORIGIN. THANK YOU.

This brings us to the end of today's session. Hope this was very helpful to you, leave a comment of what you think of this tutorial and of your questions below. Have a Blessed Day and Remember You are Amazing. God Bless.