Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Task3: This task has been designed to assess your understanding and ability to perform, prepare & appraise bank reconciliation. Use the given information in order

image text in transcribed
Task3: This task has been designed to assess your understanding and ability to perform, prepare \& appraise bank reconciliation. Use the given information in order to Verify and reconcile business records with bank's records by performing bank reconciliations. You have two different clients are facing regular monthly problems with matching the cash balance of the bank statement with the cash balance found on their business's records. Your task is to help these clients to handle and solve this issue by performing bank reconciliations for these two businesses (Gamma \& Delta) by using the available information in table 4&5.then appraise the bank reconciliation process identifying errors and omissions from bank statement and cash book. Table 4: Business (Gamma) Available information for bank reconciliation Table 5: Business (Delta) Available information for bank reconciliation \begin{tabular}{|l|l|} \hline 1 & Delta's bank statement dated December 31,2022 shows a cash balance of 45,000 \\ \hline 2 & The business's ledger shows a balance of 30,000 on the same date, \\ \hline 3 & Followingchecksissuedbythebusinesstoitssuppliersarestilloutstanding:No.500issuedonDecember27:1,800No.501issuedonDecember28:2,000.No.502issuedonDecember29:1,500.No.503issuedonDecember29:2,500. \\ \hline 4 & Anamountof5,000senttothebankfordepositonDecember31doesnotappearinthebankstatement. \\ \hline 5 & Anotereceivableamountingto15,000hasbeencollectedbybankforthebusiness.Thebankhascharged1000forthecollectionofnote. \\ \hline 6 & Thebankstatementshowsthatinterestamountingto1,200hasbeeneamedonaverageaccountbalanceduringDecember. \\ \hline 7 & A bounced check of 2,500 deposited by the business has been charged back as NSF. \\ \hline 8 & An amount of 100 has been deducted by bank as service charges for the month of December. \\ \hline 9 & A deposit of 600 was incorrectly entered as 700 in the business's cash records \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Auditing

Authors: Vasuhi M

1st Edition

6206150747, 978-6206150749

More Books

Students also viewed these Accounting questions