Question 2 (30 marks) The cash transactions and cash balances of Juno Company fo

Question

Question 2 (30 marks) The cash transactions and cash balances of Juno Company for July 2018 were as follows: 1 The ledger account for cash showed a balance of $125,868 at 31 July. 2 The July bank statement showed a closing balance of $115,128. Cash received on 31 July amounted to $16,000. It was left at the bank in the night depository box after banking hours on 31 July and therefore was not recorded by the bank in the July statement. 3 4 Also included with the July bank statement was a debit memorandum from the bank for $50 representing service charges for July.

Explanation / Answer

ans 1 Bank Reconciliation For the month ended July 31 Balance as per bank $115,128 Additions:   Deposit in Transit $16,000 16000 Deductions $131,128 Outstanding ckecks Check No 811 314 Check No 814 625 Check No 823 175 1114 Adjusted Bank Balance $130,014.00 Company's Book Book balance 125868 Add Proceeds of non interest bearing note 4000 Error made in book (915-519) 396 4396 130264 Deductions Bank service charges 50 NSF 200 250 Adjusted Book balance 130014 ans 2 Accounts Title Dr Cr a Accounts Receivable 200 Miscelleneous expenses 50 Cash 250 b Cash 4000 Notes Receivable 4000 c Cash 396 Accounts Payable 396 ans c Cash to be included 130264 ans d 1) The duties should be segregrated I,e the duties of authorization, custody and recordkeeping should be seprated 2) Preparation of montly bank reconcilation system. if any doubt please comment. If satisfied you can rate

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