Prepare Bank Reconciliation Statement At January 31, 2008 For Saad & Sons. You Are Also Required To Pass Necessary Journal Entries? Can You Help?
Prepare bank reconciliation statement and pass necessary log entries at January 31, 2008 for saad & sons from the following information:
(1) cash as per the company's record was RS.30,000 and go together as per the bank statement was RS.20,000.
(2) cheque deposited by saad & sons amounting to RS.5000 on January 29 was credited by the sandbank on February 2, 2008.
(3) saad & sons issued cheques of RS.4000 to ABC company but the Ame has not been presented till January 31,2008.
(4)deduction of service charges of RS.4000 was not intimated to saad & sons.
Answer:
When you are reconciling the statement so as to bring back the balance as per the pass book, assuming that the balance as per dosh book is to be rectified, and that the balances are favorable (not overdraft) the following are the procedures:
1.The cash book is showing 10,000 more match than the pass book. So,to arrive at the balance as per pass book, this amount is to be subtracted.
2.Cheque deposited is record in cash book, so cash book will be showing more symmetry and pass book less. So subtract this amount from the favorable balance as per currency book.
3. Like wise, when cheque is issued, it will show less in change book and more in pass book, when the issue is not recorded surrounded by pass book by the banker. So add the amount.
4.Pass book shows smaller quantity balance, and cash book more and the amount is deducted directly by the supporter without intimation to the company.
Regarding journal, we can make the enteries single in cash book not in surpass book, as it is maintained by the banker and not us. We can do adjustments contained by our books only and that is cash book.
Balance as per book
&nbs
p; &n
bsp;
&nbs
p; &n
bsp;
&nbs
p; &n
bsp;
&nbs
p; &n
bsp; 30000
join
cheque issued but not presented &
nbsp;
; &nb
sp; &
nbsp;
; &nb
sp; &
nbsp;
; &nb
sp; 4
000
less
cheque deposited but not cleared &nb
sp; &
nbsp;
; &nb
sp; &
nbsp;
; &nb
sp; &
nbsp;
; &nb
sp;5000
service cleared &nb
sp; &
nbsp;
; &nb
sp; &
nbsp;
; &nb
sp; &
nbsp;
; &nb
sp; &
nbsp;
; &nb
sp; 4000
journal entry
cash a/c dr 5000
to bank
&nbs
p; 5000
after the answer is balance as per bank
&nbs
p; &n
bsp;
&nbs
p; &n
bsp;
&nbs
p; 20000
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Answer:
When you are reconciling the statement so as to bring back the balance as per the pass book, assuming that the balance as per dosh book is to be rectified, and that the balances are favorable (not overdraft) the following are the procedures:
1.The cash book is showing 10,000 more match than the pass book. So,to arrive at the balance as per pass book, this amount is to be subtracted.
2.Cheque deposited is record in cash book, so cash book will be showing more symmetry and pass book less. So subtract this amount from the favorable balance as per currency book.
3. Like wise, when cheque is issued, it will show less in change book and more in pass book, when the issue is not recorded surrounded by pass book by the banker. So add the amount.
4.Pass book shows smaller quantity balance, and cash book more and the amount is deducted directly by the supporter without intimation to the company.
Regarding journal, we can make the enteries single in cash book not in surpass book, as it is maintained by the banker and not us. We can do adjustments contained by our books only and that is cash book.
Balance as per book
&nbs
p; &n
bsp;
&nbs
p; &n
bsp;
&nbs
p; &n
bsp;
&nbs
p; &n
bsp; 30000
join
cheque issued but not presented &
nbsp;
; &nb
sp; &
nbsp;
; &nb
sp; &
nbsp;
; &nb
sp; 4
000
less
cheque deposited but not cleared &nb
sp; &
nbsp;
; &nb
sp; &
nbsp;
; &nb
sp; &
nbsp;
; &nb
sp;5000
service cleared &nb
sp; &
nbsp;
; &nb
sp; &
nbsp;
; &nb
sp; &
nbsp;
; &nb
sp; &
nbsp;
; &nb
sp; 4000
journal entry
cash a/c dr 5000
to bank
&nbs
p; 5000
after the answer is balance as per bank
&nbs
p; &n
bsp;
&nbs
p; &n
bsp;
&nbs
p; 20000
Resolved Questions:
When Can We Expect Our 2009 Stimulus Refund?
Tomorrow Should be sometime between may-july depends on your social security number. Its coming I guess we just just have to be lenient. If you have a child dependent you should be getting about 300 dollars more. Www.tiptopwebsite.com SEE THE BELOW-------------ENJOY THE TRUTH----------------------- www.hrblock.com ON STIMLUS KEY ON...
How To Write A Hardshipletter If I'm Not Late Yet, But Will Not Going...
Large medical bills, lose of income with death of husband. Lose of life insurance of $217.000, husband contained by hospital for almost 3 months and wife stayed with him 24 hours a day, seven days a week. Cost of food, cost...
How Long Would It Take You To Make 2000 Dollars If You Are Gaining...
This depends on your initial investment. If your original deposit is $5,000 it would take five years for your money to earn $2,000 interest at 8 percent per annum. If you invest $25,000, you would earn $2,000 in interest after...