Answered: An entity has prepared its bank…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 6EA: The bank reconciliation shows the following adjustments: Deposits in transit: $852 Notes...

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An entity has prepared its bank reconciliation at 31 March 2014 taking the following

information into account:

$ $

Outstanding lodgements 5,000 Unpresented cheques 2,800

Bank charges included in the bank statement but not recorded in the cash book were $125.

The adjusted cash book balance per the bank reconciliation was a debit balance of $1,060.

What was the balance as shown on the bank statement at 31 March 2014?

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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