Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Thomas P. Lee, garage 24.6A In the draft accounts for the year ended 31 October 2019 of Thom proprietor, the balance at bank according to

image text in transcribed
Thomas P. Lee, garage 24.6A In the draft accounts for the year ended 31 October 2019 of Thom proprietor, the balance at bank according to the cash book was 894.68 in hand Subsequently the following discoveries were made: of G. Lowe Limited has cash book payments as 109.10 have been entered from T. Andrews (1) Cheque number 176276 dated 3 September 2019 for 310.84 in favour of Glow been correctly recorded in the bank statement, but included in the cash boot 301.84. (2) Bank commission charged of 169.56 and bank interest charged of 109.10 have b in the bank statement on 23 October 2019, but not included in the cash book. (3) The recently received bank statement shows that a cheque for 29.31 received from T. An and credited in the bank statements on 9 October 2019 has now been dishonoured a ited in the bank statement on 26 October 2019. The only entry in the cash book for this cha records its receipt on 8 October 2019. (4) Cheque number 177145 for 15.10 has been recorded twice as a credit in the cash book. (5) Amounts received in the last few days of October 2019 totalling 1,895.60 and recorded in the cash book have not been included in the bank statements until 2 November 2019. (6) Cheques paid according to the cash book during October 2019 and totalling 395.80 were not presented for payment to the bank until November 2019. (7) Traders' credits totalling 210.10 have been credited in the bank statement on 26 October 2019, but not yet recorded in the cash book. A standing order payment of 15.00 on 17 October 2019 to Countryside Publications has been recorded in the bank statement but is not mentioned in the cash book. Required: (a) Prepare a computation of the balance at bank to be included in Thomas P. Lee's balance sheet as at 31 October 2019. (b) Prepare a bank reconciliation statement as at 31 October 2019 for Thomas P. Lee. (c) Briefly explain why it is necessary to prepare bank reconciliation statements at accounting year ends. (Association of Accounting Technicians)

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

Audit Standards A Comparative Analysis

Authors: Walter W. O Willborn

1st Edition

0873890345, 978-0873890342

More Books

Students also viewed these Accounting questions

Question

4. Are there any disadvantages?

Answered: 1 week ago

Question

3. What are the main benefits of using more information technology?

Answered: 1 week ago

Question

start to review and develop your employability skills

Answered: 1 week ago