Catherine Big has a cash balance of 52,900 on 1 June 20X3. She opens a current account

Catherine Big has a cash balance of £52,900 on 1 June 20X3. She opens a current account on that date, with Belfast Bank, depositing £50,000. Her transactions during the next three days included the following:

1 June

• Cash sales £4,500.

• Received a cheque for £25,200 from Sean Dargan, a customer.

• Paid £2,400 as rent by cheque number 0001.

• Paid £48 as wages in cash.

• Paid the petty cashier £168 as the week's imprest. The petty cashier has a cash float of £500 at the beginning of each week and has produced vouchers to the cashier to evidence the payment out of petty cash of £168 in the last week of May.

• Deposited all amounts into bank, leaving a cash float with the cashier of £4,000. 2 June

• Paid £76 for stationery by cheque number 0002.

• Cash sales £3,680.

• £9,600 is paid as business rates by a standing order.

• Paid £290 for electricity by cheque number 0003.

• Paid £72 as wages in cash.

• Received a cheque for £36,800 from Tony Kirk, a customer.

• Deposited all amounts into bank, retaining a float of £4,000. 3 June

• Sean Dargan's cheque for £25,200 is returned to Catherine Big marked 'refer to drawer'. Catherine telephoned Sean, who apologized that he was temporarily short of funds and requested Catherine to represent the cheque to the bank on 4 June.

• The bank approves a loan to the business of £20,000. Catherine is informed that this is lodged to the current account.

• Paid £56,000 for a car by cheque number 0004.

• Wrote cheque number 0005 to draw £1,200 in cash for office use.

• Catherine drew £2,000 cash for her personal use.

Required

a. Write up the cash account and the bank account.

Catherine Big receives the following bank statement on 4 June:

Required
b. Prepare the bank reconciliation as at 3 June 20X3.

Transcribed Image Text:

Statement of Catherine Big BELFAST BANK plc, 50 Main Street, Belfast, BT1 3HO. Details Debits Credits Date 20X3 2 Jun 2 Jun Balance Deposit Deposit Standing order Cheque 0001 Loan Cheque 0003 Cheque dishonour Cheque 0005 Bonk chorges 50,000 78,384 68,784 68,384 88,384 88,094 62,894 61,694 61,674 50,000 28,384 9,600 400 3 Jun 3 Jun 3 Jun 3 Jun 20,000 290 25,200 1,200 20 3 Jun