Question

All answers are numbers which consist only of the digits 0 to 9. Symbols or punctuation marks should NOT be incorporated in answers.

Every cell must be completed.

Complete the following bank reconciliation and one journal entry to take up all relevant adjustments.

The bank statement balance as at 31 May 2016 is $70,000 Cr.

The Cash at Bank account in the General Ledger for Beta Technologies has a debit balance of $60,000 as at 31 May 2016.

The bank statement has an EFT receipt from a client on account of $2,000 and interest earned of $1,000 on 31/05/16 that do not appear in Beta's records.

Cheque Number 0615 for $10,000 was in the Cash Payments Journal but not on the bank statement.

There was a deposit in the Cash Receipts Journal for $3,000 on 31/05/16 that did not appear on the bank statement.

Bank Reconciliation (14 marks)

Bank Balance as at 31 May 2016			Answer
Subtract:	AnswerOutstanding ChequesDeposits in TransitBank FeesEFT Receipts
	Detail: AnswerChq 0615Deposit 31/5/16		Answer
Add:	AnswerDeposits in TransitBank FeesOutstanding Cheques
	Detail: AnswerChq 0615Deposit 31/5/16		Answer
Adjusted Bank Balance			Answer
Cash At Bank account balance			Answer
Add:	AnswerEFT ReceiptsOutstanding ChequesDeposits in Transit		Answer
	AnswerInterest EarnedEFT ReceiptsOutstanding ChequesDeposits in Transit		Answer
Subtract:	AnswerBank FeesInterest EarnedEFT ReceiptsN/A		Answer
Adjusted Cash Book Balance			Answer

Journal (6 marks)

			Dr	Cr
31/05/16	AnswerCash At BankInterest EarnedAccounts Receivable		Answer
		AnswerAccounts ReceivableBank FeesCash At Bank		Answer
		AnswerInterest EarnedBank FeesCash At Bank		Answer

Answer 1

	Bank Balance as at 31 amy 2016					70,000
	Subtract	outstanding checks
		chq 0615				10,000
	add:	Deposits in transit
		deposit 31/5/16				3000
	Adjusted bank balance					63000
	cash at bank account balance					60000
	add:	EFT receipts oustanding				2000
		interest earned				1000
	subtract	N/A				0
	Adjusted cash book balance					63000
						DR	CR
	31/5/16	cash				3000
		Accounts receivable					3000
		interest earned