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please help me with the answers and explain why each transaction is included or excluded (added or subtracted) in adjusted cash at bank and bank
please help me with the answers and explain why each transaction is included or excluded (added or subtracted) in adjusted cash at bank and bank statement reconciliation.
4 3 On 30 June 2019, the balance in Alex's cash at bank account did not agree with the balance on his bank statement. His cash at bank account and bank statement are given below. Cash at bank Date Particulars Cheque no. Debit Credit Balance 2019 $ $ $ Jun 1 Balance bld 3 000 Dr 3 Insurance 500 2 500 Dr 7 Eva 3 200 5 700 Dr 11 Adam 2002 2 100 3 600 Dr 2003 1 800 1 800 Dr 15 Inventory 22 Faith 2004 750 1 050 Dr 26 James 2950 4 000 Dr 29 Rent 2005 430 3 570 Dr July 1 Balance bld 3570 Dr Bank Statement Date Particulars Balance Payments Receipts $ 2019 $ Jun 1 Balance bld 3 350 Cr 50 3 400 Cr 400 3 000 Cr 550 2450 Cr 3 200 5 650 Cr 1 100 6 750 Cr 2 Cheque 3 Cheque 2001 7 Standing order - Insurance 9 Cheque deposit 10 Credit transfer- Dividends 12 Cheque 2002 14 Dishonoured cheque (deposited 9 May) 18 Cheque 2003 25 Bank charges 31 Interest on fixed deposits 2 100 4650 Cr 3 200 1 450 Cr 1 800 350 Dr 70 420 Dr 30 390 Dr Additional information: Payment of $550 for insurance is correctly recorded in the bank statement while a wrong amount was recorded in the cash at bank account. AISS Prelim 7175/01/2019 REQUIRED (a) Update the cash at bank account for the month of June 2019. Cash at bank account (b) Prepare a bank reconciliation statement as at 30 June 2019. Title: (c) State the effect of bank reconciliation on Alex's profit. (d) State one purpose of preparing the bank reconciliation statementStep by Step Solution
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