Bank Reconciliation Class demonstration exercise As accountant for William Associates, you are required to perform a bank reconciliation at the end of June 2013 The bank reconciliation statement for the previous month is set out below Bank Reconciliation Statement As at 31 May 2015 Balance as per bank statement $ 879 75 Cr Add Outstanding deposit $ 390 00 $ 1,269 75 Less Unpresented cheque no 1008 $ 161 60 Balance as per Cash at Bank account $ 1,108 15 Dr Abridged cash receipts and cash payments journals before finalisation and posting are Cash Receipts Journal Date Account Cash at bank 2015 June 2 N Burney $ 142 55 5 Sales $ 240 55 9 R Denis $ 310 25 12 Sales $ 187 85 16 Sales $ 310 25 22 Rush Ltd $ 380 65 27 Sales $ 75 45 29 Sales $ 354 35 30 Sales $ 87 55 Sales $ 65 45 Sales $ 241 34 $ 2,396 24 Cash Payments Journal Date Account Cheque no Cash at Bank 2015 June 2 Stationary 1010 $ 57 70 5 Advertising 1012 $ 180 90 Wages and salaries 1014 $ 405 15 Petty cash 1015 $ 23 55 9 Roy Sons 1016 $ 63 36 Wages and salaries 1018 $ 402 50 16 Sales commission 1020 $ 33 82 17 Shaun Ltd 1021 $ 105 51 25 Wages and salaries 1024 $ 437 35 26 T Garner 1025 $ 42 15 Central Groceries 1026 $ 46 86 Donation Blue Cross 1027 $ 11 00 28 Roy Sons 1028 $ 85 14 30 Freight inwards 1029 $ 24 25 N Brice 1030 $ 90 82 $ 2,010 06 N B A new book keeper has prepared the accounts and made a number of mistakes Therefore the folllowing checques are cancelled 1011, 1013, 1017, 1019, 1022 and 1023 BANK STATEMENT DATE PARTICULARS DEBIT CREDIT BALANCE 2015 June 1 Balance $ 879 75 Cr 2 1010 $ 57 70 $ 822 05 Cr $ 390 00 $ 1,212 05 Cr $ 142 55 $ 1,354 60 Cr 5 1008 $ 161 60 $ 1,193 00 Cr $ 240 55 $ 1,433 55 Cr 7 1012 $ 180 90 $ 1,252 65 Cr 1014 $ 450 15 $ 802 50 Cr 1015 $ 23 55 $ 778 95 Cr $ 310 25 $ 1,089 20 Cr 12 1016 $ 63 36 $ 1,025 84 Cr 1018 $ 402 50 $ 623 34 Cr $ 187 85 $ 811 19 Cr 1020 $ 33 82 $ 777 37 Cr 16 $ 310 25 $ 1,087 62 Cr 22 1021 $ 105 51 $ 982 11 Cr $ 380 65 $ 1,362 76 Cr Direct payment to Myke $ 400 00 $ 962 76 Cr 27 $ 75 45 $ 1,038 21 Cr 28 1024 $ 437 35 $ 600 86 Cr D Finley Returned cheque $ 65 00 $ 535 86 Cr 30 1025 $ 42 15 $ 493 71 Cr Bank fees $ 50 00 $ 443 71 Cr 1026 $ 46 86 $ 396 85 Cr $ 354 35 $ 751 20 Cr Govt bond Interest $ 235 00 $ 986 20 Cr Additional information Cheque no 1014 for $405 15 is entered correctly in the Cash Payment Journal but appeared in the Bank Statement as $450 15 Required Starting with the totals shown, complete the cash receipts and cash payments journals, amending or adding to them as necessary for the month of June Prepare the Cash at Bank ledger account showing the final balance at 30 June 2013 Prepare the bank reconciliation statement as at 30 June 2013 QUESTION 2 Petty cash Class Demo Exercise On 1 July, Bill Ltd established a $500 petty cash fund Cheque no 653 was received by the petty cashier and duly cashed On 31 July, the petty cash box contained the following cash and expense vouchers Cash Expense vouchers Voucher no Date Purpose Amount 36 July 7 Office supplies $ 80 00 37 10 Stationery $ 98 00 38 14 Parking ticket $ 55 00 39 19 Newspapers $ 22 00 40 23 Customer refund $ 92 00 41 26 Taxi fare $ 75 00 Required Show the journal entries that was made to establish the petty cash fund in the Cash Payments Journal on 1 July Show the journal entries needed on 31 July to reimburse the petty cash fund (cheque no 656 cash payments) in the Cash Payments Journal All expenses other than Office Supplies, Stationery and Customer Refund should be charged to Sundry Expenses Assume that a decision was made to increase the petty cash fund to $600 from 1 August (cheque no 658) Show the journal entries in the in the Cash Payments Journal to do so Prepare a petty cash book , with appropriate analysis columns similar to the one below, to incorporate the transactions of the fund shown above NOTE Ignore GST

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 30, 2024

Bank Reconciliation Class demonstration exercise As accountant for William Associates, you are required to perform a bank reconciliation at the end of June 2013. The

Bank Reconciliation Class demonstration exercise

As accountant for William Associates, you are required to perform a bank reconciliation at the end of June 2013. The bank reconciliation statement for the previous month is set out below:

Bank Reconciliation Statement
As at 31 May 2015
Balance as per bank statement		$ 879.75	Cr
Add: Outstanding deposit		$ 390.00
		$ 1,269.75
Less: Unpresented cheque no.	1008	$ 161.60
Balance as per Cash at Bank account		$ 1,108.15	Dr

Abridged cash receipts and cash payments journals before finalisation and posting are:

	Cash Receipts Journal
Date	Account	Cash at bank
2015
June
2	N Burney	$ 142.55
5	Sales	$ 240.55
9	R Denis	$ 310.25
12	Sales	$ 187.85
16	Sales	$ 310.25
22	Rush Ltd	$ 380.65
27	Sales	$ 75.45
29	Sales	$ 354.35
30	Sales	$ 87.55
	Sales	$ 65.45
	Sales	$ 241.34
		$ 2,396.24

Cash Payments Journal
Date	Account	Cheque no.	Cash at Bank
2015
June
2	Stationary	1010	$ 57.70
5	Advertising	1012	$ 180.90
	Wages and salaries	1014	$ 405.15
	Petty cash	1015	$ 23.55
9	Roy & Sons	1016	$ 63.36
	Wages and salaries	1018	$ 402.50
16	Sales commission	1020	$ 33.82
17	Shaun Ltd	1021	$ 105.51
25	Wages and salaries	1024	$ 437.35
26	T Garner	1025	$ 42.15
	Central Groceries	1026	$ 46.86
	Donation Blue Cross	1027	$ 11.00
28	Roy & Sons	1028	$ 85.14
30	Freight inwards	1029	$ 24.25
	N. Brice	1030	$ 90.82
			$ 2,010.06

N.B. A new book keeper has prepared the accounts and made a number of mistakes. Therefore the folllowing checques are cancelled: 1011, 1013, 1017, 1019, 1022 and 1023.

BANK STATEMENT
DATE	PARTICULARS	DEBIT	CREDIT	BALANCE
2015
June
1	Balance			$ 879.75	Cr
2	1010	$ 57.70		$ 822.05	Cr
			$ 390.00	$ 1,212.05	Cr
			$ 142.55	$ 1,354.60	Cr
5	1008	$ 161.60		$ 1,193.00	Cr
			$ 240.55	$ 1,433.55	Cr
7	1012	$ 180.90		$ 1,252.65	Cr
	1014	$ 450.15		$ 802.50	Cr
	1015	$ 23.55		$ 778.95	Cr
			$ 310.25	$ 1,089.20	Cr
12	1016	$ 63.36		$ 1,025.84	Cr
	1018	$ 402.50		$ 623.34	Cr
			$ 187.85	$ 811.19	Cr
	1020	$ 33.82		$ 777.37	Cr
16			$ 310.25	$ 1,087.62	Cr
22	1021	$ 105.51		$ 982.11	Cr
			$ 380.65	$ 1,362.76	Cr
	Direct payment to Myke	$ 400.00		$ 962.76	Cr
27			$ 75.45	$ 1,038.21	Cr
28	1024	$ 437.35		$ 600.86	Cr
	D Finley Returned cheque	$ 65.00		$ 535.86	Cr
30	1025	$ 42.15		$ 493.71	Cr
	Bank fees	$ 50.00		$ 443.71	Cr
	1026	$ 46.86		$ 396.85	Cr
			$ 354.35	$ 751.20	Cr
	Govt. bond Interest		$ 235.00	$ 986.20	Cr

Additional information: Cheque no. 1014 for $405.15 is entered correctly in the Cash Payment Journal but appeared in the Bank Statement as $450.15.

Required:

Starting with the totals shown, complete the cash receipts and cash payments journals, amending or adding to them as necessary for the month of June.
Prepare the Cash at Bank ledger account showing the final balance at 30 June 2013.
Prepare the bank reconciliation statement as at 30 June 2013.

QUESTION 2 Petty cash Class Demo Exercise

On 1 July, Bill Ltd established a $500 petty cash fund. Cheque no. 653 was received by the petty cashier and duly cashed. On 31 July, the petty cash box contained the following cash and expense vouchers:


Cash
Expense vouchers
Voucher no.		Date	Purpose	Amount
36	July	7	Office supplies	$ 80.00
37		10	Stationery	$ 98.00
38		14	Parking ticket	$ 55.00
39		19	Newspapers	$ 22.00
40		23	Customer refund	$ 92.00
41		26	Taxi fare	$ 75.00

Required:

Show the journal entries that was made to establish the petty cash fund in the Cash Payments Journal on 1 July.

Show the journal entries needed on 31 July to reimburse the petty cash fund (cheque no. 656 cash payments) in the Cash Payments Journal. All expenses other than Office Supplies, Stationery and Customer Refund should be charged to Sundry Expenses.

Assume that a decision was made to increase the petty cash fund to $600 from 1 August (cheque no. 658). Show the journal entries in the in the Cash Payments Journal to do so.