Question
Q.1 Gas Ltd's bank statement from AusCom bank as at 31 August shows the following information: Balance, 1 August $ 34,800 August deposits $ 146,220
Q.1 Gas Ltd's bank statement from AusCom bank as at 31 August shows the following information:
Balance, 1 August $ 34,800
August deposits $ 146,220
Cheques cleared in August $ 139,320
Balance, 31 August $ 51,864
Bank direct credits:
Collection of note receivables plus &180 inter $ 10,180
Interest earned $ 64
Bank direct debits: Safety deposit box rent $ 80
A summary of the record on Cash at bank account for August shows the following:
Balance 1 August $33,800; total cash receipts journal $154,000 and cash payment journal $147,140. Analysis reveals that the only reconciling items on the 31 July bank reconciliation were an outstanding deposit for $8,000 and unpresented cheques of $9,000. The deposit in transit was the first deposit recorded by the bank in August. In addition, you determine that there were two errors involving business cheques drawn in August: First, a cheque for $800 to a creditor on account that cleared the bank in August was journalised and posted for $840. Second, a salary cheque to an employee for $550 was recorded by the bank $556.
Required (show all working):
1. Prepare bank reconciliation for Gas Ltd for August to adjust the bank and book (32 marks)
balance.
2. Prepare required journal entries to adjust the book balance. (18 marks)
Can you guys please help me find out the answer? Thank you
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