Question

Problem 11.19 - Bank reconciliation

Information about the cash position for Charter Tours Pty Ltd for the month of June is presented below.

1. The general ledger Cash at Bank account had a balance of $25 200 on 31 May.
2. The cash receipts journal showed total cash receipts of $91 592 for June.
3. The cash payments journal showed total cash payments of $98 304 for June.
4. The June bank statement reported a bank balance of $16 132 on 30 June.
5. Outstanding cheques at the end of June were: no. 864, $240; no. 866, $292; and no. 870, 5448.
6. Cash receipts of $4800 for 30 June were placed in the bank's night safe on 30 June and were not included in the June bank statement.
7. Comparison of the presented cheques with the entries in the cash payments journal disclosed that cheque no. 842 for $1416, for rent expense, had been wrongly recorded as $1380.
8. Included on the bank statement were: a total credit for $2936, indicating an electronic transfer of $2720 plus interest earned, which the

bank had credited to the account

a dishonoured cheque written by Vinko Ltd, a client, for $1308

account and transaction fees, $128.

Required

1. Set up cash receipts and cash payments journals with totals shown, enter the necessary adjustments, and complete the journals for June
2. Post the journals in requirement A to the Cash at Bank account and balance the account.
3. Prepare a bank reconciliation statement as at 30 June.
4. What is the amount of cash that should be reported on the 30 June balance sheet?