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.

Answer 1

	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.
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