Question 4

The balance of Cash account in the General Ledger of Umar Ltd was $15,190 at 30^th September 2020. The bank statement for the business (as at 30^th September) showed a cash balance of $15,670. On comparing the general ledger and the bank statement, the following differences are identified: Two cheques used to pay suppliers did not appear on the bank statement. Cheque No. 326, $410 Cheque No. 331, $390 The bank has credited $50 interest into Umar Ltds account. The bank statement showed a deduction of $270 for monthly advertising fees. Umar Ltd has not yet processed the September advertising fees. The accountant of Umar Ltd found that she has incorrectly recorded a $1,000 cash sale made during the month as $100. $1,000 received by the business from a customer has not yet been deposited with the bank. Required: Ignore taxes and GST. Prepare a bank reconciliation statement in the table below (please do not show workings, only include description and final numbers in required cells).

Umar Ltd Cash Ledger Reconciliation Statement As at 30 September 2020 Cash balance in the general ledger Add 4 Less Adjusted cash balance in the general ledger Umar Ltd Bank Reconciliation Statement As at 30 September 2020 Balance in the bank statement Add Less Adjusted Bank Balance