Question
The Total Trading Companys bank statement for the month of November showed a balance of $7,000 CR. The company's Cash account in the general ledger
The Total Trading Companys bank statement for the month of November showed a balance of $7,000 CR. The company's Cash account in the general ledger had a balance of $5,659 DR at 30 November. Other information is as follows:
(1) Cash receipts for 30 November recorded on the company's books were $5,200 but this amount did not appear on the bank statement.
(2) The bank statement showed a debit of $40 for cheque printing charges.
(3) The total amount of cheques still outstanding at 30 November amounted to $5,800.
(4) Cheque No. 138 was correctly written and paid by the bank for $409. The cash payment journal reflected an entry for Cheque No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $490.
(5) The bank returned a dishonoured cheque from a customer for $560.
(6) The bank statement included a credit of $1,260, which represented the collection of a debtors payment by the bank for the company.
Required:
Prepare a bank reconciliation for the Total Trading Company at 30 November.
Prepare a cash at bank ledger account as at 30 November.
Journalize the entries required by the reconciliation using general journal (narration not required).
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