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Product code: Accounts-AW340

Bank Reconciliation & Financial Statements Exercise

Exercise 1: Bank Reconciliation

Camilla Decorations received its bank statement for the month of March 2013. It showed a credit balance of $6,396.70.  The Cash at Bank account on 31 March 2013 had a debit balance of $6,110.70.  The following reconciling items were identified.

  1.  Un-presented cheques amounted to $3,070.
  2.  The bank statement included a $25 debit for bank service charges for the month.
  3.  Cash taking of $2,003 for 31 March was placed in the bank’s night safe on that day but was not credited by bank until 1 April 2013.
  4.  The bank had debited a sum of $810 for a returned cheque originally received from a credit customer, Daniel Anderson in payment of his account for $900.
  5.  Cheque number 8015 for $128 for sundry stationery items purchased had been incorrectly recorded in the cash book as $182.


  1. Prepare a bank reconciliation statement at 31 March 2013.                    
  2. Prepare journal entries (in general journal format) to bring the business’ records up to date. 

Exercise 2:  The Financial Statements

Following balances are taken from the trial balance of Rita’s Mower Repairs on the 30th June





Parts Used


Petrol and Oil


Telephone and Internet








Stationary on hand






Parts on hand








Profit on sale of asset




Note: Rita initially invested $7,500 into the business.


  1. Prepare the statement of financial performance for the year ended 30th June 2013.
  2. Prepare the statement of changes in equity
  3. Prepare the statement of financial position as at 30th June 2013


Download Questions

a) Sl. No Particulars Debit Credit Closing Balance 6,110.70 6,396.70 Unpresented Cheques 3,070.00

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