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The Bank Statement and Cash Book (bank columns only) for Aragorn Elfin for the month of October 2020 are as follows. Bank statement Debit Credit
The Bank Statement and Cash Book (bank columns only) for Aragorn Elfin for the month of October 2020 are as follows.
Bank statement | |||||
Debit | Credit | Balance | |||
2020 | $ | $ | $ | ||
October 01 | Balance | 900 | |||
October 03 | T. Simeon | 150 | 1,050 | ||
October 07 | Cash sales | 850 | 1,900 | ||
October 13 | Vehicle loan | 1,700 | 200 | ||
October 15 | Standing order | 1,000 | (800) | O/D | |
October 21 | Debit transfer | 825 | (1,625) | O/D | |
October 29 | Rent | 2,300 | (3,925) | O/D | |
October 29 | Credit transfer | 4,000 | 75 | ||
October 30 | Bank chargers | 400 | (325) | O/D |
Cashbook (bank columns only) | |||||
2020 | $ | 2020 | $ | ||
October 01 | Balance b/f | 900 | October 10 | Light & Power Company | 180 |
October 03 | T. Simeon | 150 | October 13 | Vehicle loan | 1,700 |
October 07 | Cash sales | 850 | October 29 | Rent | 2,300 |
October 24 | D. Elwin | 500 | |||
October 31 | Balance c/d | 1,780 | |||
4,180 | 4,180 | ||||
Nov 1 | Balance | 1,780 |
Required
a) Prepare the updated Cashbook to show the adjusted balance. (3.5 marks)
b) Starting with the updated cash book balance, draw up a bank reconciliation statement for Aragorn Elfin for the month of October 2020. (3 marks)
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