Question $5$ Bank ReconciliationQuestion $5-$ Bank Reconciliation

The Basil Trading Company's bank statement for the month of November showed a balance

per bank of $$6,450.$ The company's Cash account in the general ledger had a balance of

$$5,659$ at $30$ November. Other information is as follows:

Cash receipts for $30$ November recorded on the company's books were $$2,650$ but this

amount does not appear on the bank statement.

The bank statement shows a debit memorandum for $$95$ for bank administration fees.

Cheque No$.119$ payable to Burns Company was recorded in the cash payments journal

and cleared the bank for $$248.$ A review of the accounts payable subsidiary ledger

shows a $$36$ credit balance in the account of Bums Company and that the payment to

them should have been for $$284.$

The total amount of cheques still outstanding at $30$ November amounted to $$3,175.$

Cheque No$.142$ was correctly witten and paid by the bank for $$409.$ The cash payment

journal reflects an entry for Cheque No$.142$ as a debit to Accounts Payable and a credit

to Cash in Bank for $$680.$

The bank returned a dishonored cheque from a customer for $$1,060.$

The bank included a credit memorandum for $$1,150,$ which represents collection of a

customer's note by the bank for the company; principal amount of the note was $$1,100$

and interest was $$50.$ Interest has not been accrued.

Required: Prepare a bank reconciliation for the Basil Trading Company at $30$ November.

Ensure that you calculate and show the adjusted cash account balance in the general ledger