2. The following pages contain the Bank Reconciliation Statement for ACM Ltd. at

Question

2. The following pages contain the Bank Reconciliation Statement for ACM Ltd. at the end of May the cash receipts and cash payments journals for June and the Bank Statement for June. Prepare the bank reconciliation for the month of June by following these steps. If there are any differences in the two the bank statement is correct a) Carefully check outstanding items from the May bank reconciliation statement against the Bank Statement, noting items, if any, that have not yet been presented at the bank. b) Carefully check items in the cash receipts journal against the bank statement ensure that the amounts are the same. Note that the receipts are deposited daily so you need to calculate the amount. The first three are done for you. Put a small tick beside each item that is in both the cash receipts journal and bank statement ale document down c) Carefully check items in the cash payments journal against the bank statement, again ensuring that the amounts are the same. Put a small tick beside each item that is in both the cash payments journal and bank statement. d) Items in the bank statement that do not have a tick against them need to be added to the relevant journal. Credits in the bank statement go in the cash receipts journal; debits in the bank statement go in the cash payments journal e) Any differences between the bank statement and journals represent errors that were made in the journals. Correct these errors by adding to the relevant journal. f Total the cash receipts and cash payments journals and post the totals to the 'cash at bank' general ledger account. Note the beginning balance of this account can be found in the May bank reconciliation statement. g) The unticked item in the cash receipts journal and cash payments journal represent outstanding deposits and unpresented cheques. Use this information to prepare the bank reconciliation statement for the month of June. There may also be unticked items in the May reconciliation which are still outstanding which have to be included into the June reconciliation. ACM Ltd Bank Reconciliation Statement as at 31 May 2016 Balance as per bank statement 343.64 Cr 131.45 475.09 61.60 Add: Outstanding deposit Less: Unpresented cheque no. 1008 Balance as per Cash at Bank account 413.49 Dr

Explanation / Answer

ACM Ltd. Bank Reconciliation Statement As at 30 June 2016 Balance as per Bank statement Cr 362.69 Add: Outstanding deposits 241.34 604.03 Less: Unpresented Cheques 239.21 Balance as per Cash at bank account Dr 364.82 Details of Outstanding deposits 30 June 2016 - Sales 241.34 Details of Unpresented Cheques & Debits in bank stament 30 June 2016 - Account & Transaction fee 22.5 26 June 2016 - Donation Red Cross 1027 11 28 June 2016 - Rfey & sons 1028 85.14 30 June 2016 - Freight Inwards 1029 24.25 30 June 2016 - P. Minecello 1030 90.82 28 June 2016 - Excess debit Wages & Sal 1024 5.5 TOTAL 239.21

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