Why would question 3 considered incorrect? The accountant at Fidel Trading has received the November 2010 bankstatement. She immediately investigates the difference between the bank account balance of thecash book and the balance of the bank statement. The accountant has found the followingdiscrepancies:i. A cheque for $3,000 received from a debtor was deposited at the bank but no journalentry was made to record the transaction in the cash book.ii. The repayment of a mortgage is made on behalf ofPOWERTEAMWORKthe business by the bank on the authority of astanding order. The payment of $18,00o for themonth of November 2010 was not recorded in thecash book.iii. A$36,900 deposit made to the bank on November30, 2010, did not appear on the bank statement.iv. A cheque for $67,000 which was paid to a creditorwas incorrectly recorded in the cash book as$76,000.Bank charges of $2,400 appeared on the bank statement only.V.vi. The direct transfer of $10,000 from Fidel's bank to the bank of the supplier was notrecorded in the cash book.vii. Cheques amounting to $41,000 that were paid to suppliers and creditors did not appearon the bank statement.viii. A deposit of $25,000 made by Federal Trading appeared on the bank statement of FidelTrading.ix. The bank account in the cash book of Fidel Trading reflected an overdraft of $12,800 onNovember 30, 2010.Required:1. Prepare Fidel Trading's adjusted cash book for November 30th 2010.2. Prepare the necessary journal entries for Fidel Trading.3. Prepare Fidel Trading's bank reconciliation statement for November 30th, 2010 Bank Reconciliation StatementFidel Trading'sBank Reconciliation Statementat November 30, 2010Balance as per adjusted cash book-31,20041,000Add: Outstanding cheques9,800Less: Deposit in transit36,90025,000Error in bank deposit-61,900-52.100Balance as per bank statement

Bank reconciliation statement is prepared with a view to reconcile the cash balances as per bank…

The accountant at Fidel Trading has received the November 2010 bank statement. She immediately investigates the difference between the bank account balance of the cash book and the balance of the bank statement. The accountant has found the following discrepancies: i. A cheque for $3,000 received from a debtor was deposited at the bank but no journal entry was made to record the transaction in the cash book. ii. The repayment of a mortgage is made on behalf of POWERY the business by the bank on the authority of a standing order. The payment of $18,00o for the month of November 2010 was not recorded in the

The accountant at Fidel Trading has received the November 2010 bank statement. She immediately investigates the difference between the bank account balance of the cash book and the balance of the bank statement. The accountant has found the following discrepancies: i. A cheque for $3,000 received from a debtor was deposited at the bank but no journal entry was made to record the transaction in the cash book. ii. The repayment of a mortgage is made on behalf of POWERY the business by the bank on the authority of a standing order. The payment of $18,00o for the month of November 2010 was not recorded in the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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