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21-08-2018

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.

Required:

  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

Advertising

$400

Wages

$21,000

Parts Used

$6,000

Petrol and Oil

$1,000

Telephone and Internet

$1,200

Rent

$11,000

Insurance

$1,500

Equipment

$7,000

Stationary on hand

$500

Creditors

$3,000

Debtors

$13,200

Parts on hand

$3,000

Bank

$7,200

Donation

$200

Revenue

$65,000

Profit on sale of asset

$1,000

Drawings

$500

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

Required:

  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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